Two major online auctioneers—New York-based Paddle8 and Auctionata in Berlin—say that they have joined forces in a “bid to grow the under served global mid-market”. The new joint company will have almost 800,000 registered users and will be “a dominant player for art and luxury collectibles”.
Paddle8, which was founded in 2011, focuses mainly on contemporary art and design, while Auctionata, established a year later, is described as “the leading online auction house for art and luxury collectibles”.
Alexander Zacke, the chief executive of Auctionata, says that the complementary business models and brands of both firms prompted the move. Paddle8 focuses on timed auctions, private and charity sales while Auctionata calls itself the “inventor of the livestream auction” and runs an “after-sales shop” where browsers can “easily find all unsold items”, from clocks and watches to antique furniture.
“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 $500,000, is vastly underserved,” according to a statement announcing the merger.
The financial terms of the merger were not disclosed. Auctionata has raised $88m in equity capital; its investors include the private equity group MCI Management and Groupe Arnault, the holding company of the French billionaire Bernard Arnault. The artist Damien Hirst is regularly cited as an investor in Paddle8, which has raised a total of $44m; the contemporary art dealer David Zwirner joined the company board last year.
Zacke told ARTNews that finding a suitable web domain for the new online platform is “the more tricky question”, while the location of the new company’s headquarters is due to be confirmed in the next three to six months. Both businesses operate offices in London.
