The deal represents a lucrative exit for a company that launched in the Triangle in the “dot com boom” era, grew to become a public company and now has an international footprint.
Shares in Triangle-based ChannelAdvisor (Nasdaq: ECOM) soared 55% on the news to $22.75 – just under the per share deal price. The acquisition was disclosed earlier Tuesday. The deal is expected to close before the end of the year.
“This is a tremendous opportunity for our customers, for our team members and our shareholders. This transaction positions the combined company to accelerate innovation and help shape the future of commerce,” said David Spitz, CEO of ChannelAdvisor, in the announcement.
Triangle entrepreneur and investor Scot Wingo and Aris Buinevicius founded ChannelAdvisor in 2001.
“Since it’s a two-phase deal (announce today and then closing by [end of year]), we aren’t making any comments,” Wingo, a board member, former chair and former CEO, told WRAL TechWire. “Once closed I’ll be happy to comment.”
ChannelAdvisor recently reported an “earnings surprise” and has benefited from the shift to internet buying and commerce as driven by the COVID-19 pandemic.
Contacted by WRAL TechWire, a ChannelAdvisor spokesman said: “Thanks for reaching out. We refer you to our press release and are unable to offer additional comment.”
CommerceHub, which focuses on a variety of supply chain and ecommerce related services, is backed by private equity firm Insight Partners. It is based near Albany, N.Y.
MarketWatch estimated the total value of the deal at $663 million.
Who is CommerceHub?
“We are a leading provider of cloud-based ecommerce fulfillment and marketing solutions for large retailers, marketplaces, consumer brands and their suppliers. We help our customers implement strategies that increase revenue through high-volume drop-ship programs and create meaningful operational efficiency in their ecommerce supply chain with customized business rules and processes.
“Our customers include more than 15,000 top retailers, brands and suppliers, including The Home Depot, Macy’s, Best Buy, Dick’s Sporting Goods and more, who use our platform every day to generate consumer demand, fulfill customer orders and facilitate the delivery of products to customers.”
The company launched in 1997.
– Commerce Hub website
ChannelAdvisor shareholders will be paid $23.10 per share under terms of the deal – in cash. That price represents a 57% premium over ChannelAdvisor’s share price as of Sept. 2.
The boards of both companies have approved the deal.
There was no immediate word or comment about possible impact on jobs or whether ChannelAdvisor will remain based in the Triangle.
The company has some 700 employees.
“CommerceHub and ChannelAdvisor have both established themselves as leading solutions for different segments of online retailers and brands. By coming together, we can provide an even broader network, enabling our combined customers to grow their businesses by discovering new products, new brands, and new channels,” said Bryan Dove, CEO of CommerceHub, in a statement.
The companies cited several points they see as positive for the deal:
- “Brands will be able to manage their public and private marketplaces alongside their retailer connections with a single vendor, improving efficiency by unifying first-party, dropship, and third-party integrations.
- “Retailers will be able to access an even larger pool of brands, with over 18,000 customers transacting more than $50 billion in gross merchandise value (GMV) and more than $500 million in digital marketing and retail media ad spend annually across the combined network.
- “Companies across the network will be able to save on delivery costs and improve delivery experiences with Delivery Suite, and improve their consumer experience with Shoppable Media and Brand Analytics.”
Once the deal closes ChannelAdvisor will become a private company, the firms said in the announcement.
Insight Partners acquired control of CommerceHub at a valuation of some $1.9 billion in 2020, according to MarketWatch.