Luigi’s Box, a rapidly growing Slovak company specializing in AI-driven personalized search and product recommendations for e-retailers, has acquired its Czech competitor, Persoo, in a multi-million euro deal. This strategic acquisition is set to solidify Luigi’s Box as the dominant force in search optimization across the Czech and Slovak markets.
Established in 2016, Luigi’s Box has achieved profitability over the last four years and secured a position in the Deloitte Fast 50 in Central Europe for two consecutive years. The company has earned recognition as a leading global e-commerce search platform and is now entering a new phase of growth with the integration of Persoo into its operations.
Gejza Nagy, co-founder and CEO of Luigi’s Box, expressed enthusiasm about the acquisition, stating, “This opportunity has come at the right time in the evolution of Luigi’s Box. We have a similar company culture, product, and vision for the future of e-commerce. We’re excited to have the Persoo team join us, bringing additional industry expertise and strengthening our position in Europe.”
Both Luigi’s Box and Persoo focus on developing personalized search and product recommendation solutions for e-retailers, leveraging AI and ML capabilities. Recognized by the Deloitte Fast 50 ranking, Luigi’s Box was listed among the fastest-growing technology companies in Central Europe in 2023. Meanwhile, Persoo secured a spot in the Technology Fast 50 for the Czech Republic.
With over 3,500 e-retailers currently using Luigi’s Box’s intelligent search, the integration of Persoo is expected to enhance their ability to serve clients such as Alza, Muziker, Kosik.cz, Benu and Dr. Max pharmacy chains, as well as retailers like Makro and Mountfield. The merger aims to bring innovations and optimizations to the e-commerce market.
Pavel Pinkas, co-founder and CEO of Persoo, shared his excitement about the merger, emphasizing the product synergies that will benefit their joint client base. He stated, “I look forward to combining our strengths, expertise, experience, and ideas.”
Search optimization using AI and machine learning is crucial for e-retailers, contributing significantly to their total turnover. Luigi’s Box’s experience shows that correctly set up optimization results in only 1 to 5 percent of searches ending with no results, compared to non-optimized sites where the no-results average can be as high as 10-20%, or even 40% in some cases. Persoo’s solution has further increased companies’ conversion rates from search by an average of 10-15%.
Investors in Persoo, including Presto Ventures and Lighthouse Ventures, expressed their support for the acquisition. Roman Nováček, partner of Presto Ventures, commented, “We’re happy to have played a part in their growth and believe that together with Luigi’s Box, they will carry on this momentum across Europe.”