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WeCommerce Holdings to buy Stamped for a sum of USD 110 million

WeCommerce Holdings to buy Stamped for a sum of USD 110 million

Vancouver-based WeCommerce Holdings is reportedly set to acquire Stamped, an e-commerce marketing platform based in Singapore, for a sum of up to USD 110 million. Known for investing in organizations within the Shopify partner ecosystem, the Canada-listed organization entered into a definitive purchase agreement for the substantial acquisition of all of the assets of Pte Ltd.

Established in 2016, Stamped helps online merchants in the management and implementation of loyalty programmes and customer reviews through Shopify and other e-commerce platforms.

According to Tommy Ong, the Chief Executive Officer of Stamped, the management team at WeCommerce brings more than a decade of experience in the development of similar enterprises and is expected to help Stamped in the acceleration of its growth.

Ong further stated that the company chose WeCommerce among several suitors due to their straightforward deal structure, their founder friendly approach, and focus on the long term.

The deal reportedly includes USD 75 million in cash upon the closure of the acquisition, financed by means of a combination of a senior secured credit facility with a JPMorgan Chase Bank-led syndicate of lenders and cash on hand.

Furthermore, a sum of another USD 10 million will be paid via the issuance of 496,697 WeCommerce’s Class A common shares at a price of CAD 25.43, constituting 1.36 per cent of the outstanding and issued common shares.

As per a statement by WeCommerce, Stamped had nearly USD 11 million in annualized recurring subscription revenue in December 2020. The company added that this reflects a projected growth rate of more than 100 per cent in comparison to the same period in 2019, with minimal spending on customer acquisition. The net revenue retention is anticipated to be nearly 125 per cent in the Q4 of 2020.

WeCommerce will be paying USD 25 million through the first quarter of 2022 if Stamped secures a minimum revenue target of USD 10 million in 2021, among other things.

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.