Comprehensive M&A data with integrated detailed company information
NexTech to snap up AR Commerce
Posted on Wednesday, 09 January 2019 13:53
NexTech is buying US-based eCommerce company AR Commerce for an undisclosed sum.
Under the terms of the transaction, the buyer will issue 1.00 million stocks to Reuben Tozman and 1.00 million shares to Evan Gappelberg, director and chief executive of the target.
NexTech plans to use the deal to promote its augmented reality (AR) and artificial intelligence (AI) portfolio, as well as a springboard for future purchases.
The buyer plans to introduce ten more products onto into its AR portfolio, including IBM Watson’s Machine Learning, allowing the company to test new technologies while creating value for the business and its shareholders.
A deal will also enable NexTech to analyse customer statistics through existing xAPI analytics installed on its site.
Gappleberg said: “This strategic acquisition allows us to jump ahead of the pack in the AR eCommerce space and provides a solid foundation of assets for NexTech to leverage into additional eCommerce acquisitions.”
Formed in 2011, the target posted USD 2.65 million in revenue and USD 275,0000 in earnings before interest, taxes, depreciation and amortisation for the financial year ended 31st December 2018.
Through the transaction, NexTech will build up a network of eCommerce partners, including Amazon, PayPal, eBay, as well as brands such as Miele, Dyson and Electrolux.
According to data provided by Statista, the eCommerce sector is expected to generate USD 3,400 billion in sales in 2019, with 55.3 per cent coming from desktop computers and the remaining 44.7 per cent from mobile devices.
NexTech’s technology currently functions on every browser, laptop and tablet and does not require the downloading of an application.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 8,934 deals targeting data processing, hosting and related services providers announced worldwide in 2018.
In the largest of these, Broadcom acquired US-based CA for USD 18.40 billion.
Other companies targeted in this sector include Ant Financial Services, Flipkart, Tencent Holdings and BMC Software.
© Zephus Ltd