China’s LightInTheBox to acquire VC-backed Ezbuy
Chinese online retailer LightInTheBox has agreed to acquire Southeast Asian e-commerce operator Ezbuy for $85.55 million through a share swap.
Ezbuy's existing shareholders will receive one-year promissory notes in LightInTheBox that will convert into 22.2 million American Depository Shares (ADS) at $3.85 apiece, assuming certain conditions are met. The company's shares closed at $1.03 on November 8, valuing the entire firm at $69.84 million.
Ezbuy's backers include IDG Capital, which holds 16.1%, as well as Sky9 Capital, Ventech China and CGC Capital, which own 1.8%, 0.81%, and 9.4%, respectively, according to the filing. The company has received five rounds of funding, most recently a $17.6 million Series C in May. Vision Knight Capital, Sky9, IDG, Ventech and CGC were among the participants in the round.
Founded in 2009 as 65daigou, Ezbuy brands itself as Singapore’s first global shopping platform with operations modeled on sector leaders such as Amazon and a customer base spanning Southeast Asia. It has more than three million customers in Singapore, Malaysia, Indonesia, Thailand, and Pakistan.
Speaking to AVCJ earlier this year, Ron Cao, founder of Sky9, described the investment in Ezbuy as a China-centric deal because it leverages his team's knowledge of China’s e-commerce market as well as supply chain management.
Similarly, this acquisition by a Chinese online retailer is seen as a move that could maximize synergies for both companies. “Integrating our supply chain network, warehousing, and logistics in China will create enormous business synergies that will truly unlock the value of the markets Ezbuy operates in and will help us build a solid platform for sustainable long-term growth,” said Zhiping Qi, CEO of LightInTheBox.
LightInTheBox, which delivers Chinese-made products to consumers globally, received backing from VCs such as Ceyuan Ventures, GSR Ventures and Trust, ridge Partners. The company raised $79 million in a US IPO in 2013. It is trading down 91% on the offering price.
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