Israeli end-to-end retail platform Global-e has agreed to acquire US-based e-commerce software provider Flow Commerce.
The $500m aggregate purchase price is divided into equal portions of cash and Global-e shares.
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By GlobalDataThe base consideration is around $425m, up to $75m of which will be paid subject to meeting certain financial results this year.
This also includes Global-e shares worth $45m for performance-based vesting warrants for Flow shares.
Global-e will integrate its data models and artificial intelligence algorithms for conversion optimisation with Flow’s application programming interface (API) based technology to offer personalised solutions for small enterprises.
The addition of Flow is intended to enhance Global-e’s offering and capabilities and provide access to an additional market of small merchants that cannot currently use Global-e’s services.
Global-e president and co-founder Nir Debbi said: “Our platform supports cross-border trade in a smart, simple and localised manner.
“This acquisition follows our strategy, ultimately allowing us to serve small and emerging brands in the most sophisticated and light-weight way possible, by utilising Flow’s cutting-edge technology coupled with Global-e’s best-in-class expertise and unique data models.
“The combination of Flow’s small merchant solution and our existing market-leading solution for large enterprise merchants is expected to allow us to position our platform as a leading cross-border solution for any size of merchant, from self-served lightweight solutions for small and emerging brands, all the way to complex tailor-made enterprise solutions for the world’s largest brands.”
Flow is expected to generate around $20m in net revenues this year.
The deal is expected to close in the first quarter of next year subject to customary closing conditions being met, including regulatory approvals.
Last month, US-based online grocery platform Instacart bought software as a service (SaaS) order management system provider FoodStorm for an undisclosed amount.