Global eReading provider Kobo Inc. has announced the successful acquisition of all its outstanding shares by Rakuten, Inc.for US $315 million. The acquisition has been completed following customary closing conditions, including approval under the Investment Canada Act. Kobo’s management team will remain with the company, which will continue to be headquartered in Toronto.
The acquisition by Rakuten, one of the world’s leading Internet service and e-commerce companies, provides Kobo with a strong growth opportunity to expand its footprint into new and expanding markets. The move comes as Kobo set new sales records this past holiday season:
- December 25th was Kobo’s best day ever for eBook downloads, with several ebooks downloaded every second by readers in over 150 countries
- Kobo saw a 10-fold increase in new customers compared to the company’s pre-holiday period
- Compared to last year’s holiday season, eGifting increased by 500%, eReader sales and eBook sales more than doubled
- More than 1 million new Kobo users were added in December alone
“During this holiday season, Kobo has demonstrated strong sales and continued leadership within the competitive eReading market; we are very excited to complete the acquisition of Kobo and look forward in supporting its global expansion,” said Hiroshi Mikitani, Chairman and CEO of Rakuten. Beyond Kobo’s established presence in the U.S., Canada, Australia, New Zealand and Singapore, the company also saw dramatic gains in the UK, France and Germany this holiday season.”
“While the transformation to digital reading is well underway, it is still in its infancy. As a part of Rakuten, we will accelerate our growth internationally, bringing new products, a leading eReading experience and a world class catalogue to passionate readers everywhere,” said Michael Serbinis, CEO of Kobo Inc.
Kobo was founded in 2009 as a contender in the global eReading market. Since its inception, the company has become a fierce competitor in the marketplace with its family of innovative eReaders, global ebookstore, industry-leading social platform and a wide range of free eReading apps for smartphones, tablets, netbooks and desktop computers.