European Web CD stores merge

The European online music retailing scene received a dose of consolidation today Swedish player Boxman buying IMVS.com, a British counterpart, for £10.4 million, in an all share deal. Post-acquisition, IMVS.com will leave Ofex (the UK's smallest stock market) and its shareholders will own a 20 per cent slug of the enlarged Boxman. Boxman is a small company with big ambitions. Through this acquisition it is bulking itself up nicely for next year's IPO. It has retained Morgan Stanley Dean Witter to advise (presumably on where it should float and how much it get away with charging for its shares). Set up in 1997, Boxman has established local operations throughout Scandinavia. This year it opened for business in the UK, France and Germany. It sells videos as well as music online, and it recorded £6 million turnover in 1998. ®