Third-party online marketplace Packable, which operates across a half dozen eCommerce platforms, including Amazon, Walmart, eBay and Google Shopping, on Thursday (Sept. 9) announced it would merge with Highland Transcend Partners I Corp in a deal valued at $1.5 billion, according to a press release from the company.
Packable, which was founded in 2010 as Pharmapacks, entered into an agreement to merge with Highland, a so-called blank check or special-purpose acquisition company. The transaction is expected to close within several months.
The merger will help Packable as it contemplates its next stage of growth after its collaboration with lead investor Carlyle in November, according to the press release. Merging presents a large opportunity for further growth, Highland Transcend CEO Ian Friedman said, noting that third-party marketplaces are projected to generate more than 40% of all eCommerce revenues by 2025.
Packable has generated roughly 75 million customer transactions to date, according to the press release, making a name for itself in eCommerce buying, selling and fulfilling customer orders. As part of the merger, the company intends to broaden its partnerships with national companies, while expanding its geographic footprint with new distribution centers and bolstering investments in online-focused companies.
“While we’ve become a market leader in our industry, there is significant runway ahead of us in multiple avenues: from the continued proliferation of online marketplaces and geographic opportunities to our ability to invest in and grow digitally native brands, while providing new data and technology services, as well as marketing options for our brand partners,” Packable Co-founder and CEO Andrew Vagenas said. “Given the breadth of opportunity ahead of us, we felt that this was the perfect time to unveil our new Packable branding, which reflects these new avenues for growth.”
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Spurred in large part by the COVID-19 pandemic, eCommerce has seen tremendous increases since last year, according to PYMNTS. Chris Abele, vice president of digital commerce strategy at Fiserv, told PYMNTS last year that “we effectively have seen two to three years of eCommerce growth in a matter of three or four months.” It’s a massive shift that, according to Abele, is likely to stick around and accelerate post-pandemic.
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