Sanjay Singh, formerly of Abercrombie & Fitch and Procter & Gamble, will head up a new data-analysis business unit.
To build up its client portfolio and round out its suite of e-commerce services, Digital River is acquiring Commerce5, a provider of enterprise e-commerce services for the manufacturing and consumer electronics markets.
Digital River Inc. is acquiring Commerce5 Inc., a provider of enterprise e-commerce services for the manufacturing and consumer electronics markets. Upon the closing of the acquisition, Commerce5 will become a wholly-owned subsidiary of Digital River. Digital River acquired Commerce5 for approximately $45 million in cash, composed of payments to stockholders of $32.4 million and a payment of $12.6 million in liabilities.
Through the agreement, Digital River will also acquire approximately 40 Commerce5 client contracts, including ATI Technologies Inc., Fujitsu Computer Products of America, Gateway Inc., Lexmark International Inc., Sharp Electronics Corp., Sony Electronics Inc. and Western Digital Corp.
"We already have demonstrated success growing online businesses for manufacturers of high-tech products in markets that are closely aligned with the software publishing space,” says Digital River CEO Joel Ronning. “We intend to leverage that success through the acquisition of Commerce5 to further extend our reach and accelerate our growth in the broader high-tech marketplace."
Commerce5’s e-commerce system provides pre-built integrations with major distribution and logistics partners, including Ingram Micro and Tech Data, as well as with other back-office financial and enterprise resource planning applications. Commerce5`s platform, which manages orders from multiple channels, also supports product catalogs with different product combinations and unique price books based on personalized log-ins.
Digital River is making acquisitions to acquire new customers and round out its suite of e-commerce services. In 2004, Digital River acquired web analytics provider Fireclick Inc. for $7.5 million.