Singapore startup Stamped to be acquired for up to US$110m by Canada-listed WeCommerce

SINGAPORE-BASED e-commerce marketing platform Stamped is being acquired by Canada-listed WeCommerce Holdings for up to US$110 million.

WeCommerce, which invests in companies within the Shopify partner ecosystem, said last Friday that it has signed a definitive purchase agreement to acquire substantially all of the assets of Stamped.io Pte Ltd.

The deal comprises US$75 million in cash upon the closing of the acquisition, funded through a combination of cash on hand and a senior secured credit facility with a syndicate of lenders led by JPMorgan Chase Bank, NA.

Another US$10 million will be paid through the issuance of 496,697 Class A common shares of WeCommerce at a price of C$25.43 (S$27), representing 1.36 per cent of the issued and outstanding common shares.

On top of this, WeCommerce will pay US$25 million in the first quarter of 2022 if Stamped achieves a minimum revenue target in 2021 of US$10 million, among other things. This will be fulfilled in either cash, the issuance of common shares, or both.

Stamped had about US$11 million in annualised recurring subscription revenue as at December 2020, WeCommerce said in a statement.

This reflects an estimated growth rate of over 100 per cent compared to the same period in 2019, with minimal spend on customer acquisition, it added. Net revenue retention is estimated to be about 125 per cent in the fourth quarter of 2020.

Founded in 2016 by Tommy Ong, Stamped helps online merchants implement and manage customer reviews and loyalty programmes through Shopify and other e-commerce platforms.

"WeCommerce's management team brings over a decade of experience developing similar businesses, which is expected to help us accelerate growth. Among many suitors, we chose WeCommerce because of their founder friendly approach, straightforward deal structure, and focus on the long term," said Mr Ong, who is chief executive officer.