The Israeli online trading company Global E will acquire American FLOW for $ 500 million
Posted on Nov 24, 2021 by Ifi Reporter - Dan Bielski
The Israeli online trading company Global E joins the constant shopping journey of the technology companies. The company will acquire American FLOW for $ 500 million. This is a share and cash transaction in equal parts, with $ 425 million to be paid upon completion of the transaction and an additional $ 75 million to be made in accordance with the achievement of certain targets in the 2021 summary.
Fluo, which also trades online, is expected to post net revenue of $ 20 million in 2021 and the deal is expected to close definitively during the first quarter of 2022.
The acquisition of Fluo is intended to enable Global Island to enter into activities in the small business market. Global Island currently works primarily with large chains and brands and enables them to localize ancillary services to online commerce such as currency adjustments, handling shipments and customs.
Fluo has developed API-based technology, ie a simple interface, which allows quick customization of trade sites without the need to install special software and is therefore suitable for the younger and smaller brand market. Global Island, founded in 2013 by Amir Schlecht, Shahar Tamari and Nir Debbie, currently works with 500 brands, including Hugo Boss and Marks & Spencer.
Fluo is an American startup founded in 2015 by Rob Kibb and Mike Bryce in New Jersey. The company has raised $ 55 million in two rounds to date, with its investors including American Express Ventures and Bain Capital. The last round was held in 2019 so it raised $ 37 million.
As part of the deal, Global offered non-options for its shares of $ 70 million to Shopify, the Canadian e-commerce giant that is one of the company's largest shareholders. The move is intended, among other things, to prevent the dilution of Shufifei's holding following the allotment to Floo's shareholders.
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