An industry-leading ecommerce network CommerceHub, connecting demand, supply, and delivery for the world’s leading retailers and brands, and ChannelAdvisor, a leading provider of cloud-based e-commerce solutions that enable brands and retailers to increase global sales, have entered into an agreement for CommerceHub to acquire the outstanding shares of ChannelAdvisor in a transaction led by global software investor and current CommerceHub shareholder.
CommerceHub has agreed to pay $23.10 per share, or approximately $635 million, in cash for the 27.5 million outstanding shares of ChannelAdvisor, representing a 57% premium over the company's stock price on September 2, 2022. The board of directors of both companies has approved the decision unanimously.
Here’s what both the company’s CEOs have to say:
‘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,’ says Bryan Dove, CEO, CommerceHub.
‘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,’ says David Spitz, CEO, ChannelAdvisor.
CommerceHub and ChannelAdvisor will work together to expand capabilities for brands and retailers:
- Brands will be able to manage their public and private marketplaces alongside their retailer relationships with a single vendor, increasing efficiency by combining first-party, dropship, and third-party integrations.
- Retailers will have access to an even larger pool of brands, with over 18,000 customers transacting more than $50 billion in GMV and $500 million in digital marketing and retail media ad. spend annually across the combined network.
- Companies across the network will be able to use Delivery Suite to reduce delivery costs and improve delivery experiences, as well as Shoppable Media and Brand Analytics to improve the consumer experience.
Investors that participated in this transaction include Insight Partners, GTCR, Sycamore Partners, and Goldman Sachs Asset Management. Financing for the transaction is being provided by Sixth Street and Golub Capital LLC.
The proposed transaction may not require financing conditions and is expected to close in 2022. The transaction is subject to customary closing conditions, including regulatory approvals and stockholder’s approval by ChannelAdvisor. Until the proposed transaction is completed, the companies will operate independently.
ChannelAdvisor will become a privately held company after the transaction is completed, and shares of ChannelAdvisor's common stock will no longer be listed on any public market.
