ChannelAdvisor Corporation (NYSE: ECOM) operates a multi-channel commerce platform, which enables brands and retailers around the world to expand sales and connect with more customers. Shares of the e-commerce platform provider surged 55% during trading on Tuesday, September 6, 2022. Over the past three months, ChannelAdvisor has seen average daily volume of 195,900 shares. However, the company reported volume of 7.54 million shares or dollar volume of around $171.84 million, exchanged hands during trading Tuesday.

Shares of ChannelAdvisor jumped after the company announced that it has entered into a definitive agreement to be acquired by CommerceHub, a commerce networking provider. Under the terms of the agreement, CommerceHub will acquire all outstanding shares of ChannelAdvisor at a price per share of $23.10. This gives the transaction a total value of $663 million. Furthermore, the offer represents a 57% premium compared to ECOM’s close on September 2, 2022.

The transaction remains subject to ECOM shareholder and regulatory approvals. However, management estimates the transaction will close before the end of 2022. Upon closing of the deal, ChannelAdvisor will delist from the Nasdaq and become a privately-held company.

The ChannelAdvisor and CommerceHub combination means brands and customers can manage their public and private marketplaces as well as maintain retailer relationships. Retailers will have a larger selection of brands with a combined pool of over 18,000 customers with transactions greater than $50 billion in gross merchandise value (GMV). The combined entity will also help its customers save on delivery costs and improve logistics through its “Delivery Suite.”

“CommerceHub and ChannelAdvisor have both established themselves as leading solutions for different segments of online retailers and brands. By coming together, we can provide an even broader network, enabling our combined customers to grow their businesses by discovering new products, new brands, and new channels,” said Bryan Dove, CEO of CommerceHub.

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