E-commerce platform Global-e to acquire tech company in deal valued up to $500 million
E-commerce platform Global-e Online Ltd. (GLBE) announced it will acquire technology Flow Commerce Inc. in a deal valued up to $500 million. The transaction includes a base consideration of $425 million and up to $75 million based on certain 2021 results, plus $45 million in Global-e shares "for certain assumed, performance-based vesting warrants for Flow shares." The transaction is expected to close in the first quarter of 2022. Flow is expected to generate $20 million in net revenue in calendar 2021. The acquisition aims to help Global-e reach small merchants who can't currently use the company's services. The deal is expected to encroach on certain cross-border services that are part of an exclusive relationship with Shopify Inc. (SHOP.T) As a result, Global-e will issue a warrant for approximately $70 million in shares to Shopify. Global-e stock has tumbled 25.8% over the last three months while the S&P 500 index is up 4.6% for the period.
(END) Dow Jones Newswires
November 24, 2021 09:22 ET (14:22 GMT)
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