NEW YORK, NY and BERLIN, GERMANY--(Marketwired - May 12, 2016) - Auctionata and Paddle8 announced today that they are joining forces to create the global leader in online art, collectibles and vintage luxury. The joint company will immediately become one of the top 10 auction houses worldwide outside of China and the fastest growing company in the sector. Paddle8 and Auctionata share a vision of being the destination of choice for the 21st century collector as well as art dealers. Auctionata has already established a presence in Europe as the leading German auction platform. In the U.S., Paddle8 is the largest online auction platform and has strong brand recognition as a marketplace for art and luxury collectibles. With joint sales above $150M and nearly 800,000 registered users, the united company will be a dominant player for art and luxury collectibles in the most important markets globally.
"Auctionata and Paddle8 combine complementary business models which will mutually benefit each other in their respective markets. Our ability to innovate at a faster pace and develop new technologies and services is a great opportunity to further increase growth. The reciprocal nature of our business, coupled with our shared desire to grow the culture of collecting in a transparent and efficient manner made this partnership a very easy decision," said Alexander Zacke, CEO of Auctionata.
Together, Paddle8 and Auctionata will grow the underserved global mid-market in this space. While legacy brick-and-mortar auction houses dominate the high-end of the collectibles market, online secondary marketplaces at the opposite end of the spectrum cannot provide transparency and authentication. This leaves a gap where the middle market, for objects up to $500K, is vastly underserved. Both Paddle8 and Auctionata have independently pursued this market, and together they are poised to win and grow the sector.
"This merger allows us to allocate greater resources toward innovating at every step of the collecting process, from online valuation services to post-sale fulfillment, and to expand our current offerings in terms of both categories and sales channels," said Aditya Julka, co-founder of Paddle8. "As a result, we'll be able to provide the best customer experience and the most efficient and comprehensive platform in the middle market for buyers and sellers from every corner of the globe."
The joint company will offer a more extensive and diversified inventory as Paddle8's sales are oriented mostly toward contemporary art and design, while Auctionata specializes in vintage luxury. Paddle8's strong presence in timed auctions, private and charitable sales coupled with Auctionata's industry-first livestream auction format plus online shop means that the two companies can now provide customers with an unrivalled multitude of categories and sales formats. In addition, the united company's strong presence and operational hubs in Europe and the U.S. will enable it to consolidate the market not only in terms of categories, but also across geographies.