Wesfarmers Limited is buying online retailer Catch Group for $230 million. The conglomerate announced the deal this morning saying the buy will help build its “data and digital capabilities” and bolster its ecommerce offerings.

The deal is still subject to approval by competition regulators, which Wesfarmers said it expects will happen in the coming months. Catch Group will operate as an independent business unit, Wesfarmers said.

“Catch Group has a high calibre management team and a leading ecommerce platform with quality fulfilment assets,” Wesfarmers managing director Rob Scott said.

“This acquisition represents an opportunity to accelerate Wesfarmers and Kmart Group’s digital and ecommerce capabilities whilst continuing to invest in the unique customer and supplier proposition provided by Catch Group.”

Catch Group is best known as an online retailer, offering first party goods as well as providing a marketplace for third party sellers, but has also branched out into utilities, financial lending and last year expanded into the New Zealand market.

The company claims to have over 1 million customers and offers 1.9 million SKUs through its online marketplace.

Catch Group uses two fulfilment centres in Victoria which in peak periods ships more than 10,000 parcels a day.

Kmart Group Managing Director Ian Bailey, who will now oversee Catch Group, said Catch had built a successful first-party and fast-growing marketplace business underpinned by a leading technology platform and data capabilities.

“We are excited to work with the Catch team and look forward to leveraging our capabilities to grow the business and accelerate the customer-driven, omnichannel initiatives across Kmart and Target,” Bailey said.

“This will further drive best practice in supply chain, fulfilment and online execution across our brands, including opportunities for Target to secure online fulfilment capacity and productivity benefits. Catch will also benefit from the support of Kmart Group’s scale and capabilities to drive its continued growth in its existing marketplace business.”

Catch Group managing director and CEO Nati Harpaz said he looks forward to working with the Kmart Group.

“Catch will continue to deliver innovation in the online market in Australia, with the focus of delivering great value and savings to our customers,” Harpaz said.

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