CommerceHub, an e-commerce inventory management and supply chain systems provider, has been acquired by private equity firms GTCR and Sycamore in a deal worth $1.1 billion.
The hefty price tag comes shortly after CommerceHub reported fourth quarter financial results that fell well below Wall Street estimates. Nevertheless, the company held onto its share price after announcing that it recently landed Macy's as an anchor customer.
"GTCR and Sycamore recognize the power of CommerceHub's platform and our unique ability to transform how retailers and brands drive growth through e-commerce," said Frank Poore, CommerceHub founder, president, and CEO.
"Our customers rely on CommerceHub as a strategic partner to enable their most critical growth strategies, and we are confident that our relationship with GTCR and Sycamore will accelerate the development of our platform and solutions to enable the future of retail," he added.
Mark Anderson, managing director of GTCR, noted that the acquisition will give CommerceHub the financial wherewithal "to tie together all sources of demand, supply and delivery in global e-commerce."
CommerceHub said its board unanimously approved the deal and the transaction's expected to close in the third quarter.
Macy's strong Q4 results fuel optimism for retailer's turnaround
Macy's said same-store sales climbed 1.4 percent over the quarter, ending three years of declines.
QVC, HSN, Liberty Interactive's retail brands become Qurate, aim for 'third way to shop'
Liberty Interactive formed Qurate to focus on melding video commerce with other sales channels.
Alibaba sets up AI research facility with Singapore university
Jointly launched by the Chinese tech giant and Singapore's Nanyang Technological University, the "multimillion-dollar" research institute will focus on applying artificial intelligence for home, retail, community, and urban transportation.