Feedonomics Acquisition: Key Details, Impact, and What Comes Next

BigCommerce's acquisition of Feedonomics marks a significant step in the eCommerce industry. Announced on July 27, 2021, this $145 million deal aims to enhance omnichannel commerce by integrating Feedonomics' data feed optimization with BigCommerce's platform. This strategic move is set to streamline merchant operations and boost cross-channel sales, reflecting the growing importance of optimized product data in eCommerce.

What Is Feedonomics?

Founded in 2014, Feedonomics is a full-service product feed management platform that offers solutions for advertising, marketplaces, onboarding, and custom business needs. Its core services include data ingestion, standardization, optimization, syndication, protection, and order syncing. Unique in the market, Feedonomics provides 24/7 global support and integrates with major ecommerce platforms like BigCommerce, Magento, and Shopify. The platform's proprietary technology and certified partner program further distinguish it in the industry.

Who Acquired Feedonomics?

BigCommerce is a leading ecommerce platform provider known for its comprehensive suite of tools and services that help businesses build, manage, and scale their online stores. Key offerings include open SaaS, headless commerce, multi-storefront management, and omnichannel capabilities. The company also provides launch services, success services, and training through BigCommerce University. Recognized as a Magic Quadrant™ Challenger for Digital Commerce, BigCommerce is highly regarded for its flexibility, scalability, and strong customer satisfaction.

When Was Feedonomics Acquired?

BigCommerce acquired Feedonomics on July 27, 2021. This acquisition aligns with the growing trend of omnichannel commerce and the increasing importance of ecommerce channel ad spending, which is projected to surpass $41 billion in the U.S. by 2024. The timing reflects BigCommerce's strategic move to enhance its platform capabilities, providing merchants with advanced tools to optimize their advertising and selling across multiple channels, thereby driving higher return on ad spend (ROAS) and overall sales.

Why Was Feedonomics Acquired?

• Market Expansion: The acquisition of Feedonomics allows BigCommerce to significantly broaden its market reach. By integrating with over 100 global marketplaces and advertising channels, including Google, Facebook, Amazon, and eBay, BigCommerce enables merchants to optimize their advertising and selling efforts across various platforms. This expansion helps merchants increase their market presence and maximize sales opportunities.
• Technology Integration: Feedonomics' advanced data feed management technology is a key asset for BigCommerce. The integration of this technology allows for the ingestion, unification, enhancement, and syndication of product data, streamlining operations for merchants. This joint functionality aims to maximize omnichannel sales and return on ad spend (ROAS) by connecting, transforming, and enhancing product data across hundreds of global channels.
• Competitive Advantage: The combination of BigCommerce's ecommerce platform and Feedonomics' data feed management technology creates a powerful solution for merchants. This integration improves the effectiveness of search and ad spend, achieves higher site traffic and revenue, and provides a more unified shopper experience. The acquisition positions BigCommerce as a leading platform for omnichannel selling, offering merchants the ability to leverage enriched product data directly within new marketplaces, social channels, and ad networks.

Acquisition Terms

• Acquisition Price: BigCommerce acquired the assets of Feedonomics for up to approximately $145 million.
• Payment Method: The transaction included approximately $80 million in cash paid at closing, with up to $32.5 million to be paid at each of the first and second anniversaries of closing. BigCommerce may elect to make these anniversary payments partially or entirely in shares of its Series 1 common stock in lieu of cash.
• Key Conditions or Agreements: The acquisition is structured as an asset purchase transaction. The anniversary payments are contingent upon the achievement of certain milestones. BigCommerce has the option to make the anniversary payments in cash or shares of its Series 1 common stock.

Impact on Feedonomics

The acquisition of Feedonomics by BigCommerce has led to notable changes in operations and management. Feedonomics continues to operate as an independent business unit within BigCommerce, ensuring continuity in its leadership and company structure. This strategic move allows Feedonomics to leverage BigCommerce's resources while maintaining its operational autonomy. The integration of Feedonomics' data feed management platform with BigCommerce's ecommerce capabilities aims to streamline merchant operations, enhancing their ability to optimize product data across multiple channels and drive higher return on ad spend (ROAS).

In terms of product offerings and services, the acquisition has significantly bolstered BigCommerce's omnichannel capabilities. The combined platform now supports seamless merchant integrations with over 100 global marketplaces and advertising channels, including Google, Facebook, Amazon, and eBay. This integration enhances product data transformation and syndication, leading to improved conversion rates and gross merchandise volume (GMV). Employee and customer reactions have been overwhelmingly positive, with key figures like Shawn Lipman, CEO of Feedonomics, and Brent Bellm, CEO of BigCommerce, expressing enthusiasm about the synergy and strategic alignment between the two companies.

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