Poland-based e-commerce company Allegro is set to buy Czech online retailer Mall Group for over $1 billion.

Allegro said the newly merged company will have an addressable market of 70 million people across the Czech Republic, Slovakia, Hungary, Slovenia, Croatia, and Poland.

The acquisition will see Allegro acquire the e-commerce assets of Mall Group and the logistics assets of WE|DO from Jakub Havrlant's Rockaway Capital investment group, PPF Group, and Daniel Kretinsky's and Patrik Tkac's EC Investments.

The deal will be financed via equity and cash according to Allegro and is expected to close in the second half of 2022.

The purchase price may increase by up to €50 million dependant on circumstances.

Founded in 1999, Allegro is one of Poland’s most popular e-commerce platforms. According to the company, it had over 16 million users in 2017.

The news comes after Amazon launched a distinct Polish website - Amazon.pl - in March of this year and launched its prime service in October.

Amazon has been operating in Poland since 2014.

“Buyers will benefit from the improved selection, price, and convenience, while a joint base of around 135,000 merchants will be able to ‘list once, sell everywhere’,” said François Nuyts, chief executive at Allegro.

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