Why ChannelAdvisor (ECOM) Shares Are Trading Higher Premarket Today

Software as a Service (SaaS) provider CommerceHub agreed to snap multichannel commerce platform ChannelAdvisor Corp ECOM for $23.10 per share in cash.
The purchase price represents a premium of 57% over the September 2 closing stock price.
The boards of directors of both companies have unanimously approved the transaction.
Upon completion of the transaction, ChannelAdvisor will become a privately held company and cease to trade on any public market.
Investors participating in this transaction include Insight Partners, GTCR, Sycamore Partners, and Goldman Sachs Asset Management.
Sixth Street and Golub Capital LLC will fund the transaction.
"By coming together, we can provide an even broader network, enabling our combined customers to grow their businesses by discovering new products, new brands, and new channels," said Bryan Dove, CEO, CommerceHub.
ECOM's Q2 revenue of $42.8 million beat the consensus of $42.7 million. Subscription revenue increased 13%Y/Y, while the Brands subscription revenue grew 27% Y/Y.
Price Action: ECOM shares traded higher by 54.8% at $22.75 in the premarket on the last check Tuesday.
Photo by Capri23auto from Pixabay

ChannelAdvisor Shares Pop On Takeover Offer At 57% Premium