Global-E Online To Acquire Flow Commerce For ~$500M

Global-E Online Ltd GLBE has agreed to acquire Flow Commerce Inc, a technology-based cross-border e-commerce software solution provider, for about $500 million. Flow Commerce, founded in 2015 by Rob Keve and Mike Bryzek, is based in Hoboken, NJ.

• The purchase price comprises a base consideration of $425 million and up to $75 million in potential additional consideration based on specific financial results in 2021, plus $45 million in Global-E shares for certain assumed, performance-based vesting warrants for Flow Commerce shares.
• The company expects the acquisition to strengthen its offering and capabilities, allowing access to the market of small merchants not currently eligible to use Global-E's services.
• Flow Commerce is expected to generate approximately $20 million in net revenues in the calendar year 2021.
• Global-E expects the deal to close during Q1 2022.
• Global-E Online held $395.8 million in cash and equivalents as of September 30, 2021.
• Price Action: GLBE shares are trading higher by 2.75% at $54.12 on the last check Wednesday.