Global-e to acquire cross-border e-commerce provider for SMEs

PETAH-TIKVA, Israel, November 24, 2021 (GLOBE NEWSWIRE) – Global-e (NASDAQ: GLBE) (“Global-e” or the “Company”), the world’s leading end-to-end cross-border platform for brands and retailers, today announced that it has entered into a definitive agreement (the “Agreement”) to acquire Flow Commerce Inc. (“Flow”), a technology-based cross-border e-commerce software solution for emerging brands .

The acquisition is expected to strengthen Global-e’s offering and capabilities, allowing Global-e to access an additional addressable market of small merchants currently ineligible to use Global-e’s services.

By leveraging Flow’s robust API-based technology, Global-e will be well positioned to provide small merchants with a best-in-class solution tailored to the needs of emerging brands, with a lightweight integration effort and advanced capabilities. service, in combination with Global-e’s unique data models and AI algorithms for conversion optimization.

The acquisition is expected to allow Global-e to expand the scope of its exclusive relationship with Shopify to offer certain cross-border services to a wider set of merchants on the platform in addition to its current 3 end-to-end.e-party solution for established brands. Along with this expanded relationship, Global-e has agreed to issue Shopify with a warrant of approximately $ 70 million in Global-e shares.

“Our platform supports cross-border commerce in a smart, simple and localized way,” said Nir Debbi, president and co-founder of Global-e. “This acquisition is part of our strategy, allowing us to eventually serve small emerging brands in the most sophisticated and lightest way possible, using Flow’s cutting-edge technology combined with cutting-edge expertise and models. unique data from Global-e. The combination of Flow’s small trader solution and our existing market leading solution for large business traders should allow us to position our platform as a leading cross-border solution for traders of all sizes, from lightweight solutions to self-service for small and emerging brands, to complex bespoke business solutions for the world’s biggest brands.

“We are thrilled to join Global-e, the leading cross-border e-commerce platform for mid to large brands,” said Rob Keve, co-founder and CEO of Flow. “Flow’s technology powers dozens of emerging brands with a cross-border solution that’s quick to deploy and easy to manage. As the cross-border e-commerce market continues to grow, we believe Global-e is the ideal partner for We believe joining forces with Global-e will allow us to further expand our platform and solution capabilities for our existing merchant partners, accelerate our reach to new brands around the world and help fuel our continued growth. “

“In Rob, Mike and the entire Flow team, we have found a group of highly skilled professionals who are as passionate as we are about cross-border e-commerce. We look forward to welcoming them to the Global-e family, ”said Amir Schlachet, Co-Founder and CEO of Global-e.

Global-e has agreed to acquire Flow for an aggregate purchase price of approximately $ 500 million (in equal parts of cash and shares of Global-e), including basic consideration of approximately $ 425 million. and up to approximately $ 75 million in potential additional consideration based on certain financial results in 2021, plus approximately $ 45 million of Global-e shares for certain deemed performance-based purchase warrants for Flow shares. Flow is expected to generate approximately $ 20 million in net revenue in calendar year 2021. The transaction is expected to close in the first quarter of 2022, subject to customary conditions, including regulatory approvals.

About Global-e

Global-e’s mission is to make global e-commerce ‘border independent’. Global-e is the leading global platform to enable and accelerate global, direct-to-consumer cross-border e-commerce. A chosen partner of more than 500 global brands and retailers in the United States, Europe and Asia, Global-e makes international selling as easy as domestic selling. Founded in 2013 by Amir Schlachet, Shahar Tamari and Nir Debbi, the company enables e-commerce retailers to increase the conversion of international traffic to sales by providing online shoppers in more than 200 destinations worldwide a shopping experience. transparent and localized. Global-e’s end-to-end e-commerce solutions combine state-of-the-art localization capabilities, big data best practice business intelligence models, streamlined international logistics and extensive cross-border experience, enabling international buyers to buy seamlessly online and at retailers. sell from and to anywhere in the world.

About FLOW

Flow’s technology is emerging brands’ preferred powerful solution to accelerate and optimize their global expansion and drive cross-border sales in more than 200 countries around the world. With an easy-to-use interface and flexible technology, the solution allows merchants to use only the tools and services they need, be it location, experience optimization, currency exchange and payments, or Flow’s global infrastructure for shipping and taxes and compliance. Founded in 2015 by Rob Keve and Mike Bryzek, Flow is headquartered in Hoboken, NJ with a workforce spread across the globe.

Caution Regarding Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the area of ​​law. security of Private Securities Litigation. Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the conditions and expected closing date of the acquisition of Flow, the benefits of the potential acquisition of Flow, the business strategy of Global- e and its competitive position after the acquisition, future results of operations, plans, objectives and future activities. These forward-looking statements, which involve known and unknown risks, uncertainties and other factors that could cause actual results, performances or achievements to differ materially from the future results, performances or achievements expressed or implied by these forward-looking statements. . These factors include, but are not limited to: the risks that the Flow business will not be successfully integrated; failure to realize the synergies or benefits of the Flow acquisition; failure to maintain our existing merchants, or the Gross Merchandise Value (GMV) generated by those merchants; failure to attract new merchants, or the merchants we attract fail to generate GMV or revenues comparable to our current merchants; the inability to develop or acquire new features or improve our existing platform; failure to compete successfully with current and future competition; non-integration of our platform with e-commerce platforms; failure to maintain the functionality of our platform; the inability to effectively manage our growth; risks associated with cross-border sales and transactions; risks associated with government export controls; the compromise of the personal information of our merchants and buyers that we store; the inability to improve our reputation and awareness of our platform; decreased demand for our platform and services due to changes in laws and regulations; actual or perceived non-compliance with strict and changing privacy, data protection and data security laws, regulations, standards and contractual obligations; failure to adequately maintain, protect or enforce our intellectual property rights; the COVID-19 pandemic could have a material adverse effect on our business; and other factors discussed under “Risk Factors” in our prospectus filed with the Securities and Exchange Commission (“SEC”) on September 13, 2021 and other documents filed or provided to the SEC. You need to carefully consider the above factors. When used in this press release, these statements include words such as “may”, “will”, “expect”, “believe”, “plan” and other similar terms. These statements reflect management’s current expectations regarding future events and operational performance and speak only as of the date of this document. Unless required by law, it should not be expected that this information will under all circumstances be updated, supplemented or revised, whether as a result of new information, changing circumstances, future events. or otherwise.

Investor Relations Contact for Global-e:

Erica Mannion or Mike Funari
Sapphire, LLC Investor Relations
[email protected]
+1 617-542-6180

Media contact for Global-e:

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Garrett krivicich
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+1 786-233-7684

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