By Michael Dabaie
Global-e Online Ltd. said it would acquire e-commerce software company Flow Commerce Inc. for up to about $500 million in cash and Global-e shares.
The deal is comprised of a base consideration of about $425 million and up to about $75 million in potential additional consideration based on results in 2021, plus about $45 million in Global-e shares for performance-based vesting warrants for Flow shares, Global-e said Wednesday.
The company said it expects Flow to generate about $20 million in net revenues in calendar year 2021. Global-e said it expects the transaction to close during the first quarter 2022.
Cross-border e-commerce platform company Global-e said it expects the deal to allow access to an additional addressable market of small merchants not currently eligible to use Global-e's services.
The acquisition is expected to allow Global-e to expand the scope of its relationship with Shopify Inc. to offer cross-border services to a broader set of merchants on the platform in addition to its current third-party solution catering to established brands, Global-e said. Concurrent with this expanded relationship, Global-e agreed to issue to Shopify a warrant for about $70 million in Global-e shares.
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(END) Dow Jones Newswires