Flash sale site Rue La La to buy rival Gilt

Flash sale site Rue La La says it will buy rival Gilt from department store chain Hudson's Bay as it seeks to fortify its presence in the world of online discount luxury.

Hudson's Bay had bought Gilt for $250 million in 2016, and created Gilt shops inside its discount chain Saks Off Fifth. The terms of Monday's deal were not immediately disclosed.

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The new company will be called Rue Gilt Groupe, though Rue La La and Gilt will still operate their sites independently. The combined company expects to reach about $1 billion in sales with a total of 20 million customers.

Michael Rubin, executive chairman of Rue La La, says the businesses complement each other, though Gilt caters to a higher-income shopper.