Privalia acquires German online retailer Dress for Less

London -- Online sales club Privalia Venta Directa, S.L. said Monday it will acquire Dress for Less, a German online fashion retailer, from Palamon Capital Partners, a pan-European private equity firm.



The acquisition will be funded through a combination of $123 million of new equity provided by equity firms General Atlantic, Highland Capital Partners, Index Ventures and Insight Venture Partners.



Dress for Less founders Mirco Schultis and Holger Hengstler will become significant shareholders in Privalia.



Dress for Less operates a distribution platform in the open site, discount and full-price segments. It has more than 500,000 active customers and a total customer base of one million in more than 50 countries worldwide.



This acquisition marks Privalia's first entry to the German market, and follows a $95 million financing in October 2010.