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Highlights:
- The ECOM stock jumped more than 54 per cent in the morning trading on September 6.
- ChannelAdvisor Corporation received an acquisition offer from CommerceHub.
- ChannelAdvisor had a P/E of over 11.
The cloud-based e-commerce solution provider, ChannelAdvisor Corporation (NYSE:ECOM), attracted the investors' attention on September 6, as seen by a significant surge in its price.
The ECOM stock gained more than 54 per cent in the morning trading on Tuesday, September 2, after the firm received an acquisition offer.
Let's take a closer look into the recently announced deal with Kalkine Media® before evaluating its recent stock and financial performance.
Details about the acquisition deal:
The e-commerce firm, ChannelAdvisor, had received an acquisition offer from CommerceHub. The latter is a commerce network firm that hosts integration, drop-ship fulfilment, and other related solutions.
According to the company's release, both firms have entered into a definitive agreement under which CommerceHub would buy the outstanding shares of ChannelAdvisor in a transaction.
The transaction would be led by Insight Partners, a venture capital and private equity firm. It is also the current shareholder of CommerceHub.
As per the deal, the stockholders of the Morrisville, North Carolina-based e-commerce company would receive US$ 23.1 apiece in cash, representing a premium of 57 per cent of the company's previous close of September 2, or the last full trading day before this recent announcement.
The board of directors of both the companies have unanimously nodded to the transaction.
Financial highlights for fiscal 2022 second quarter:
The revenue of ChannelAdvisor was US$ 42.8 million in Q2 FY22, compared to US$ 41.54 million in Q2 FY21. Its revenue came in above its guidance range's midpoint in Q2 FY22.
ChannelAdvisor’s subscription revenue soared 13 per cent year-over-year (YoY), while its brand revenue increased by 20 per cent YoY in Q2 FY22.
The net income of the e-commerce firm was US$ 1.83 million in Q2 FY22, down from an income of US$ 4.56 million in the year-ago quarter.
Source: ©Kalkine Media®; © Canva via Canva.com
For the third quarter of fiscal 2022, the company expects its revenue to be between US$ 43.4 million and US$ 43.8 million, an increase of four per cent to five per cent YoY, respectively. For fiscal 2022, it provided a guidance range of US$ 177 million to US$ 179 million for its revenue.
Bottom line
The price of the ECOM stock was US$ 22.75 at 9:52 am ET on September 6, an increase of 54.76 per cent from its previous closing price of US$ 14.70. Its trading volume was over 2.19 million during drafting.
The US$ 693.62 million market cap firm had a price-to-earnings ratio (P/E) of 11.4.
