Global Blue Acquires ZigZag To Add Returns To Tax-Free Shopping Solution

Tax-free shopping company Global Blue has acquired software-as-a-service firm ZigZag Global to expand its services to include a global eCommerce returns management program.

Global Blue raised $70 million, in exchange for common stock issued to new institutional investors, to fund the acquisition, which is expected to close by the end of this month, according to a press release published today (March 8).

The Switzerland-based company offers retailers tax-free shopping capability by processing VAT/GST refunds. It also offers “smart payment solutions,” including point of sale (POS) and eCommerce gateways, as well as currency conversion solutions, provided at the POS, ATMs and on eCommerce sites, which have the option of offering multi-currency pricing, according to Global Blue’s website.

ZigZag helps retailers manage their returns “by digitalizing the e-commerce returns process,” according to the release. The firm offers an online returns portal that consolidates the logistics of the process, including displaying a variety of shipping options as well as exchange alternatives.

Based in London, ZigZag’s logistics network offers retailers in 130 countries access to over 450 carrier services and 220 warehouses, according to the press release. Approximately 100 global retailers currently use its software to process returns.

Global Blue will use ZigZag’s technology to add returns to its product offerings. Meanwhile, ZigZag will be able to sell its solutions within Global Blue’s merchant network and will also be able to offer Global Blue’s payments and data services.

While the pandemic has accelerated online shopping, the rise of returns has come with it. The 2020 holiday season, especially, saw returns spiral. Salesforce estimated customers around the world would return a total of $280 billion worth of goods, which represents about 30 percent of orders made over the holidays.

ZigZag is Global Blue’s first acquisition since going public by merging with a special purpose acquisition company (SPAC), Far Point, last year.

Global Blue processed 35 million tax free shopping transactions worth 18.5 billion euros ($21.9 billion) in its fiscal 2019 year, ending March 31, 2020, according to the press release.