BigCommerce, an eCommerce software platform, on Tuesday (July 27) announced its acquisition of Feedonomics in an asset purchase transaction.
BigCommerce purchased the assets of Feedonomics for approximately $145 million, with roughly $80 million paid at closing and up to $32.5 million to be paid at each of the first and second anniversaries of closing. BigCommerce may elect to make the anniversary payments partially or entirely in shares of its Series 1 common stock in lieu of cash, the company said in a statement.
As PYMNTS previously reported, U.S.-based BigCommerce helps build online stores, something that businesses of all sizes have capitalized on in the wake of the pandemic. The company helps startups and small and medium-sized companies incorporate tools to grow their online sales.
Last week, BigCommerce partnered with Latin American eCommerce company Mercado Libre to allow BigCommerce merchants to sell in Latin America, an area where the eCommerce market continues to boom.
With eCommerce spending expected to surpass $41 billion in the U.S. by the end of 2024, according to a report, BigCommerce hopes to continue that upward trend with the acquisition of Feedonomics. As part of the acquisition, the eCommerce platform will streamline merchant integrations with more than 100 online marketplaces and advertising channels, including Google, Facebook, Microsoft Ads, Amazon and Walmart, among others.
Feedonomics works to list products everywhere people shop online. The company helps online retailers improve product discovery across various advertising channels and digital marketplaces.
“With Feedonomics, BigCommerce merchants maximize their omnichannel sales and return on ad spend by connecting, transforming and enhancing their product data across hundreds of global channels,” said Brent Bellm, BigCommerce CEO. “The combination catapults our ability to deliver the world’s most powerful eCommerce platform for omnichannel selling.”
Shawn Lipman, Feedonomics CEO, said there is an “amazing synergy” between the two companies.