Software company BigCommerce explores sale, sources say

Commerce.com

07/05/2024 21:25

(Adds background on company, share reaction in paragraphs 6-11)
    By Milana Vinn
       May 7 (Reuters) - BigCommerce  BIGC.O , the e-commerce
software maker that used to be backed by SoftBank Group
 9984.T , is exploring a sale after attracting takeover
interest, people familiar with the matter said on Tuesday.
    BigCommerce has become an acquisition target after losing
90% of its market value in the four years since its initial
public offering. It has struggled to compete against larger
rival Shopify  SHOP.TO .
    The Austin, Texas-based company has asked investment bank
Qatalyst Partners to solicit interest from potential buyers that
include private equity firms, the sources said.
    The discussions are at an early stage and no deal is
certain, the sources added, requesting anonymity because the
matter is confidential.
    Spokespeople for BigCommerce and Qatalyst did not respond to
requests for comment. 
        BigCommerce's shares ended trading on Tuesday up 11% at
$6.94 on the news, giving the company a market value of more
than $500 million. The company also had long-term debt as of the
end of December of $339 million.
        BigCommerce provides software and an e-commerce platform
to retailers, allowing them to build online store fronts. It
also provides tools for search engine optimization, marketing
and security for small and medium-sized businesses. 
        The company almost doubled its sales between 2020 and
2022, as small businesses and large brick-and-mortar chains
scrambled to meet demand for online orders during the COVID-19
pandemic. However, its growth has slowed down significantly as
worldwide lockdowns have been lifted and e-commerce growth has
tapered. 
        It has fallen behind Shopify, which has been posting
double-digit-percentage sales growth, and has seen more
retailers, such as Walmart  WMT.N , Target  TGT.N  and Macy's
 M.N , offering their own online marketplaces to small
businesses. 
    Earlier this year, SoftBank sold its entire stake in
BigCommerce, having first invested in the company in 2014.
    BigCommerce said this week it has tapped e-commerce industry
veteran Travis Hess as its president to drive expansion efforts
globally.  

 (Reporting by Milana Vinn in New York
Additional reporting by Siddharth Cavale in New York
Editing by Greg Roumeliotis)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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