ChannelAdvisor Shares Pop On Takeover Offer At 57% Premium

Loading...
Loading...
  • Software as a Service (SaaS) provider CommerceHub agreed to snap multichannel commerce platform ChannelAdvisor Corp ECOM for $23.10 per share in cash.
  • The purchase price represents a premium of 57% over the September 2 closing stock price.
  • The boards of directors of both companies have unanimously approved the transaction.
  • Upon completion of the transaction, ChannelAdvisor will become a privately held company and cease to trade on any public market. 
  • Investors participating in this transaction include Insight Partners, GTCR, Sycamore Partners, and Goldman Sachs Asset Management. 
  • Sixth Street and Golub Capital LLC will fund the transaction.
  • "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, CommerceHub.
  • ECOM's Q2 revenue of $42.8 million beat the consensus of $42.7 million. Subscription revenue increased 13%Y/Y, while the Brands subscription revenue grew 27% Y/Y.
  • Price Action: ECOM shares traded higher by 54.8% at $22.75 in the premarket on the last check Tuesday.
  • Photo by Capri23auto from Pixabay
Market News and Data brought to you by Benzinga APIs
Posted In: NewsSmall CapPre-Market OutlookTechBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...