On Tuesday, August 12, another ecommerce platform vendor will announce it is being acquired. This one, among the crews. More details are forthcoming after Tuesday’s announcement.
B2C Partners believes announcements like this will become more common in today’s economy. The market is saturated with providers targeting the enterprise. Few are profitable, even among the good guys. When operating capital becomes harder for vendors to find, finding a suitor may be the only option.
What does that mean for retail clients? Of course, that depends on what survives the aftermath. Generally speaking, hold on to your wallets. When GSI Commerce acquired Accretive Commerce last year, users faced more integration costs to switch toolsets.
B2C Partners recommends retailers review service agreements to ensure they survive future M&A activity. Ongoing support should continue until the client’s original investment has fully depreciated, or for one year beyond the merger/acquisition activity, whichever is later.