CommerceHub set to acquire ChannnelAdvisor for $663 million

Yahoo Finance Live looks at CommerceHub's move to acquire ChannelAdvisor.

Video transcript

[AUDIO LOGO]

RACHELLE AKUFFO: So kicking us off first with ChannelAdvisor, the ticker is ECOM. Now, the e-commerce platform that helps brands with their multi-channel sales strategies saw its stock popping almost 55% today. Now, that came on news that CommerceHub is acquiring the company for $23.10 per share. Now, that cash price is a 57% premium to ChannelAdvisor's closing price on Friday.

Now, on the $660 million deal, CommerceHub CEO Bryan Dove said both companies, quote, "established themselves as leading solutions for different segments of online retailers and brands. 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." But of course, we have to keep in mind that e-commerce has actually slowed in 2022. So, Seana, this really is a play on its rebound in the long-term potential and opportunities.

SEANA SMITH: It is a play. Will be interesting to see if we do see some more consolidation in this sector as some companies really try to team up in order to advance that growth that we have started to see slow in the area. But the jump we saw today no surprise, given the price that is being paid for the stock. Again, it's trading just below that, just above $22.77 a share. So obviously, investors a little bit encouraged by that news today with the stock up 54%.