MercadoLibre (MELI) to Buy DeRamate for $40M

August 26, 2008 9:40 AM EDT

MercadoLibre, Inc. (Nasdaq: MELI) today announced that the Company has entered into an agreement to acquire operations of DeRemate, an online trading platform, in Argentina, Chile, Colombia and Mexico.

The aggregate purchase price to be paid by the Company to DeRemate, upon the closing of the transaction, is $40.0 million. The acquisition is expected to be completed during the third quarter; however the completion of the transaction is subject to customary pre-closing conditions. MercadoLibre will acquire DeRemate for $22.0 million in cash and issue a promissory note to DeRemate for the remaining $18.0 million.

The acquisition is expected to significantly expand MercadoLibre's footprint in Chile while strengthening the company's leadership position in Argentina. DeRemate's Chilean and Argentinean operations generated annual gross merchandise volume of approximately $95 million in 2007. Management expects significant synergies between both businesses to be realized, mainly through improving the monetization of DeRemate's gross merchandise volume and by generating efficiencies in operations and technology.

Mercadolibre, Inc., together with its subsidiaries, hosts an online trading and payments platform in Latin America.

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