Aggregating E-Commerce Aggregators

On March 4, 2024, Berlin-based Razor Group ("Razor") acquired Boston-based Perch in an all-stock deal. Both companies are e-commerce aggregators, an industry made up of third-party marketplace sellers that gather products from multiple online brands and sell them in one place.

Upon the companies' merger, Perch's investors will own about one third of the combined company shares, while Razor's investors will own the remaining two thirds. The transaction is based on a valuation of US$1.7 billion for the combined company. In connection with the acquisition, Razor raised an additional US$100 million led by Presight Capital. Notably, at the time of acquisition, Perch had US$400 million in debt, a significant factor considering recent movement in the sector.