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ESW, formerly eShopWorld, expects the deal to boost its market strength in multiple sectors as it eyes ambitious growth targets in the years ahead.
Irish e-commerce player ESW has announced plans to acquire Scalefast, an e-commerce-as-a-service provider based in the US.
ESW, formerly known as eShopWorld, said the deal will boost its market strength in apparel, beauty, personal care and brands in areas such as entertainment, gaming and electronics.
Scalefest builds e-commerce stores by leveraging its in-house platform, retail infrastructure and knowledge in proprietary data and behavioural analytics, giving brands direct-to-consumer e-commerce features and capabilities.
Financial terms of the deal were not disclosed, but it is reported to be worth around $300m.
“ESW’s acquisition of Scalefast demonstrates our commitment and ambition to accelerate growth for our customers by empowering them to be at the forefront of rapidly evolving consumer requirements around the world,” ESW founder and CEO Tommy Kelly said.
“Scalefast’s technology offering is highly complementary and will enable ESW to unleash new capabilities and deliver even faster direct-to-consumer e-commerce growth for new and existing clients,” Kelly added.
The announcement follows ambitious growth targets set by the Dublin-headquartered e-commerce player last year. ESW had said it intends to grow its revenues to $5bn over five years, while creating 500 new jobs over the next three years.
ESW serves customers in more than 200 different markets, with e-commerce services covering compliance, data security, fraud protection, taxes and tariffs, delivery, returns and customer service. Following the acquisition, Scalefast’s clients will get access to ESW’s checkout, payment gateway and logistics offerings.
“Scalefast’s services are highly synergistic with ESW’s from a revenue generation perspective,” Scalefast CEO Nicolas Stehle said. “We are excited by this opportunity to join in a bold vision for the future of DTC [direct-to-consumer] e-commerce.
“Scalefast and ESW’s blended knowledge, expertise and technology will provide distinct competitive advantages as a fully integrated technology-driven commerce service provider.”
The deal is expected to close by the middle of 2022, subject to customary approvals.
Following the acquisition, Scalefest founders Stehle, CTO Frédéric Bocquet and CMO Olivier Schott will join ESW’s senior management team.
Last year, international shipping provider Asendia became the sole owner of ESW. Asendia, a joint venture between La Poste Group and Swiss Post, was a majority shareholder in the business since 2017.
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