BigCommerce Acquires Feedonomics for $145M

Open SaaS E-commerce platform BigCommerce Holdings, Inc. (BIGC) announced that it has acquired full-service data feed management platform Feedonomics for $145 million.

Following the news, shares of the company gained marginally to close at $68.34 in the extended trading session.

The acquisition has been funded by approximately $80 million in cash and up to $32.5 million to be paid upon achievement of certain milestones.

With this buyout, BigCommerce will gain access to Feedonomics’ efficient data management platform, which will subsequently enhance the company’s offerings to its customers.

The CEO of BigCommerce, Brent Bellm, said, “This acquisition reflects our strong belief that Feedonomics offers the world’s best product feed optimization and syndication solution for merchants looking to optimize their advertising and selling via search engines, ad networks, social media sites and marketplaces. On average, these channels represent Ecommerce merchants’ largest non-direct source of sales and one of the largest spending line items.” (See BigCommerce stock chart on TipRanks)

Recently, Barclays analyst Raimo Lenschow reiterated a Hold rating on the stock. The analyst, however, raised the price target from $53 to $66, which implies downside potential of 2.9% from current levels.

The analyst remains optimistic about a strong earnings season for the U.S. software companies in the second quarter with improving demand visibility in the future. Taking this into account, the analyst expects the management of the company to provide a brighter commentary about the future.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus based on 4 Buys and 8 Holds. The average BigCommerce price target of $65.89 implies the stock has downside potential of 3% from current levels. Shares have declined about 6% over the past year.