YOOX S.p.A. (BIT:YOOX) reportedly is seeking acquisition of The Net-A-Porter Group Limited from Compagnie Financiere Richemont SA. “Online fashion retailers Yoox and Richemont's Net-a-Porter are trying to resuscitate merger talks that took place more than a year ago to better fight cut-throat competition,” industry sources told Reuters. “It might work this time because Net-a-Porter is in better shape today than it was a year and a half ago and therefore it is more amenable to do deal today than back then," one of the sources said.

The talks come as Net-a-Porter founder Natalie Massenet is in the final stretch of negotiating her five-year payout deal with Richemont which could reach more than €100 million based on the value of her online company. The sources with knowledge of the situation said Richemont could use the payout as an incentive to get Massenet to accept a deal with Yoox which she was reluctant to approve back in 2013. "It is normal that these deals happen at a time when earn-outs are being negotiated," one of the sources said.

Sources said that Richemont, which financially supports several struggling fashion brands such as Lancel and Dunhill, would be keen to offload Net-a-Porter as it is not regarded as core to the group and requires further investment. Sources also said that Richemont would consider a deal involving Yoox shares rather than cash since the group had more than €4 billion of cash sitting on its balance sheet. “This would explain why Richemont would not be contemplating an initial public offering of Net-a-Porter,” the sources added.

The sources said a merger with Yoox would also solve a management issue for Net-a-Porter as it has been without a Chief Executive since the departure of Mark Sebba last year. Sources said Yoox Chief Executive Federico Marchetti, an industry veteran, could take the reins of the combined entity. Richemont and Yoox declined to comment.