Indian eCommerce company Flipkart has reportedly seen its increased takeover offer of around $950m accepted by rival Snapdeal’s board.
According to Reuters, citing sources, the bid was accepted last week and is now waiting on approval from Snapdeal’s shareholders. Flipkart intends to absorb at least some of Snapdeal’s 1,500 employees as part of the deal.
Snapdeal’s biggest shareholder is a company that has been in the news a lot lately – it goes by the name of SoftBank – and is said to be keen on closing the deal, and taking an equity stake in Flipkart.
Flipkart’s revised offer was made for Unicommerce, Snapdeal’s marketplace and eCommerce solutions provider, but not for its logistics arm Vulcan Express and digital payments unit FreeCharge. However, the third largest private-sector lender in India, Axis Bank, is expected to acquire FreeCharge for $60m.
Snapdeal’s board also reportedly considered a $700m share-swap offer from listed eCommerce firm Infibeam but rejected because the offer was too low.