Global-Island acquires a company from the United States for about half a billion dollars

by time news

More and more Israeli technology companies traded on Wall Street are reporting the use of recently raised funds, through a public offering or merger with SPAC, for the purpose of acquiring companies, for considerable sums.

In recent months, purchases of more than $ 4 billion have been made by Israeli technology companies, some of which have only recently raised money. Among the major acquisitions made by new public companies is Conxity acquired by Tabula For $ 800 million, Tapjoy acquired Iron Source For $ 400 million and Reworks it acquired Politics At $ 400 million.

This week a company joined the list Global-E (Global-E), which provides cross-border e-commerce technology. Global-E acquires the American company Flow Commerce in a combined transaction of cash and shares (in equal parts), which will reach up to $ 500 million; $ 425 million will be paid upon completion of the transaction and an additional $ 75 million will be transferred based on Fluo’s 2021 financial results. In addition, the transaction includes a consideration of $ 45 million in Global Island shares for Fluo options holders.

Fluo is expected to generate $ 20 million in revenue this year

Like Global Island, New Jersey, located in New Jersey, provides cross-border e-commerce solutions, though it caters to a different segment of the market – small and medium-sized companies and emerging brands, as opposed to Global Island which caters to big brands and retailers. According to Global-E, the leverage of Fluo’s technology will enable Global-E to be in a good position to provide small merchants with the best solution tailored to their needs.

The acquired company is expected to generate net revenue of $ 20 million this year, and the deal is expected to close during the first quarter of 2022. The company notes that the acquisition is expected to allow Global-E to expand its scope of operations with the online trading company shopify , So you can offer services to a wider range of merchants. In line with the expansion of the relationship between the two, Global-E also announced the issuance of warrants to Shufifei for Global-E shares worth $ 70 million.

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“Our platform supports cross-border commerce in a smart, simple and place-based way,” said Nir Debbie, President and Co-Founder of Global-E. “The acquisition fits our strategy, to serve both small and growing brands in the most sophisticated and easy way, using Flow’s advanced technology, along with the vast experience of Global-E and the unique models of our data.” Debbie added that the acquisition would position Global Island as the leading platform for merchants of all sizes.

“Global Island is the ideal partner for us”

Rob Kib, co-founder and CEO of Fluo, added that the company’s technology is helping dozens of emerging brands as an easy solution to assimilate and manage, and he says, “The cross-border e-commerce market continues to grow, and we believe Global Island is the ideal partner for us.”

Global-Ei, managed by CEO Amir Schlecht, was founded in 2013 by Schlecht, Debbie and the company’s operations manager, Shachar Tamari. With buyers in their own language and calculate the local purchase taxes.

In May, Global-E was issued on NASDAQ at a value of approximately $ 3.55 billion (price of $ 25 per share), raising a total of approximately $ 431 million gross. Subsequently, shareholders took advantage of the positive momentum in the share to sell some of their holdings, The three founders sold shares for a total of about $ 100 million, and the stock currently shows a positive return of 144% to investors in the offering, reflecting a global inequality of $ 8.9 billion.

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