Italian online fashion retailer Yoox bought Net-a-Porter , its upmarket rival , on Tuesday in an all-share deal for stock valued at about 719 million euros ( $ 775 million ) to create the world ’ s biggest online luxury-goods retailer with combined sales of 1.3 billion euros ( $ 1.4 billion ) . Net-a-Porter ( NAP ) owner Richemont ( CFR.VX ) will receive 50 percent of the combined Yoox Net-a-Porter Group but its voting rights will be capped at 25 percent , putting Yoox ( YOOX.MI ) effectively in charge of the combined business . 'Today , we open the doors to the world 's biggest luxury fashion store . It is a store that never closes , a store without geographical borders , ' said NAP founder Natalie Massenet , who will oversee editorial content and advertising of the new group as executive chairman . NAP founder : 'Today , we open the doors to the world 's biggest luxury fashion store . It is a store that never closes , a store without geographical borders , ' said NAP founder Natalie Massenet . Biggest online luxury retailer : Italian online fashion retailer Yoox has bought Net-a-Porter , its upmarket rival , in an all-share deal that creates an industry leader in the booming online luxury market . Yoox boss , founder and minority shareholder Federico Marchetti will become chief executive and shape strategy . 'Between us , we have changed the fashion industry somehow and we will continue to change it , ' Marchetti told journalists in a conference call on Tuesday . The online luxury goods industry is still in its infancy , making up only around 5 percent of total luxury sales because many brands put off Internet expansion , worrying it would not offer customers the same high-end experience as their stores . The online luxury goods industry is still in its infancy , making up only around 5 percent of total luxury sales because many brands put off Internet expansion , worrying it would not offer customers the same high-end experience as their stores . But many executives now believe the Internet will be key to driving future sales , particularly among the so-called Millennials , web-savvy customers born between 1980 and 2000 . Net-a-Porter stock : Yoox SpA agreed to buy Cie. Financiere Richemont SA ’ s Net-a-Porter business for stock valued at about 719 million euros ( $ 775 million ) to create the world ’ s biggest online luxury-goods retailer . Yoox stock : Yoox shares , which gained already nearly 10 percent on Monday after Yoox and Richemont confirmed the new purchase , values Yoox at 1.56 billion euros . Online luxury is not yet very profitable : Both Yoox 's and NAP 's operating margin is less than 5 percent compared with more than 25 percent for most big luxury brands such as Gucci or Prada . But the pair hope their bigger size will help cut warehouse , logistical , back-office and distribution costs , lifting margins . Yoox operates the online sales of fashion brands such as Ermenegildo Zegna and Kering ( PRTP.PA ) 's Bottega Veneta and Saint Laurent and also sells items at a discount . Analysts said the deal could help boost Yoox 's chances of retaining luxury brands that might otherwise have wanted to take their online operations in-house once they gained experience . ' I 'm positive on the outlook for the online luxury market . I believe it 's a structural change that will gain traction as younger generations of more 'digitally minded ' managers get to the top , ' said Gian Luca Pacini at Intesa Sanpaolo in Milan . NAP , which is regarded as having helped make online shopping an entertainment experience , specializes in current season and off-the-runway items and advises customers on what to wear them with . It also published the fashion magazine Porter . Luxury moving online : The online luxury goods industry is still in its infancy , making up only around 5 percent of total luxury sales but many executives now believe the Internet will be key to driving future sales . Marchetti said NAP would have the same valuation as Yoox once the deal was completed in September . Analysts valued NAP at around 1.5 billion euros , above Yoox which stood at 1.32 billion euros on Friday before news of the potential deal came out . Yoox shares , which gained already nearly 10 percent on Monday after Yoox and Richemont confirmed Reuters reports they were in talks , were up more than 8 percent by 0501 EDT at 25.14 euros , valuing Yoox at 1.56 billion euros . The combined business will generate adjusted earnings before interest , tax , depreciation and amortization ( EBITDA ) of around 108 million euros in 2014 and annual synergies of around 60 million euros by the third full year , the two companies said . If Yoox shareholders approve the deal in June , the new group will launch a rights issue of around 200 million euros ( $ 216 million ) in the fall to fund growth , with Richemont expected to fund around half the sum , a spokesman for the Swiss group said . Marchetti said strategic investors keen to participate in the capital increase could include luxury brands but gave no further details . Richemont has agreed to a lock-up period of three years regarding half of its stake , or 25 percent , which analysts said they would expect the Swiss group to eventually sell . The group will appoint two members of 12-member board . Marchetti , who currently owns over 7 percent of Yoox , said he planned to remain a shareholder .
Italian online fashion retailer Yoox bought Net-a-Porter , its upmarket rival , in an all-share deal for stock valued at about $ 775 million . The merge will create the world ’ s biggest online luxury-goods retailer with combined sales of $ 1.4 billion . 'Today , we open the doors to the world 's biggest luxury fashion store ... .a store without geographical borders , ' said NAP founder Natalie Massenet .