The merger will see DealsDirect's parent company Mnemon acquire 100 percent of Grays Holdings to create "Australia's largest listed e-commerce group with gross sales in excess of $440 million" according to a statement from Mnemon.
The new group will incorporate a number of online sites, including DealsDirect, Top Buy, GraysOnline and OO.com.au; when combined, Mnemon boasts the group will have a customer database of 6.2 million (though this figure does not factor in those who are members of multiple sites).
After starting life on eBay (the site's founders claim the title of being eBay Australia's largest sellers before launching their own site in 2004) DealsDirect now sells a broad range of merchandise, from bedding and homewares, to jewellery, toys and exercise equipment.
Grays has a century-long heritage as an auctioneer, entering the internet age with its first online auctions in 2000. The site now auctions goods across a number of categories, as well as hosting stock clearances and fire sales after company closures (for example, GraysOnline sold excess stock after the collapse of the Victorian division of Retravision in 2012). Grays also has the largest independent e-commerce wine business in Australia.
Mnemon Chairman Naseema Sparks said the pairing of the companies made "compelling strategic sense" as it would provide the benefits of scale in business operations and result in the creation of "Australia's largest e-commerce group".
"By combining the businesses, we will secure a market-leading position," said Sparks.