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Telstra Acquires E-Commerce Platform Neto
Telstra today announced that, subject to completion of binding transaction documents entered into yesterday, it will make a majority investment in Australian online e-commerce platform Neto.
The Australian telco will take a majority stake in the company after announcing it has entered into a binding transaction agreement.
Brisbane-based Neto, which launched in 2011, provides a cloud-based e-commerce solution that allows small to medium sized retailers and wholesalers to quickly establish an end-to-end online store.
Current customers of Neto include The Spotlight Group, Anaconda, Drizabone and Edible Blooms and, according to the company, it also has a strong relationship and integration with eBay, with a majority of its customers also having a presence on eBay.
Telstra Business Group Managing Director, Will Irving said the investment in Neto is a logical fit for Telstra as the technology needs of business customers change with the digital revolution in retail.
“We estimate that by 2020, 82 percent of SMEs will have a web presence, rising from 58 percent today.
“The role of e-commerce will only become more important in the competitive retail environment. The Neto platform allows businesses to meet the needs of customers at their convenience: where they want and when they want.
“Neto is a truly innovative Australian company and our investment will represent a great opportunity to deliver value to our customers.”
Power Retail reached out to Neto Founder and Director, Ryan Murtagh for his insights into the investment and the opportunity it provides Neto to expand at a faster rate and help Australian retailers compete on a global scale.
“This is a joint venture (JV), not a full acquisition,” he said. “The partnership will result in no change to Neto’s operations or our relationship with our existing customers. Furthermore, Neto’s Directors, including myself as CEO, will remain actively engaged in the running of the company and will continue to drive our vision to be the leading all-in-one e-commerce platform for retailers and wholesalers.
“With the technical expertise and scale that Telstra brings, I believe that this partnership will allow us to accelerate our development plans and to provide Australian SMEs with an even better product and a higher level of service and support.
“I’m 100 percent committed to making this work. I like to think of it as Neto on steroids!”
What Telstra is paying for Neto, and other terms of the investment, have not been disclosed.