Investment firm Insight Partners has acquired a majority stake in CommerceHub in a deal valuing it at $1.9 billion, according to the e-commerce company.
Insight bought part of the stakes in CommerceHub that were owned by private equity firms GTCR and Sycamore Partners, which will remain investors.
The Albany, New York-based company had hired Morgan Stanley to explore options, including an initial public offering. “Everything was on the table,” said Chief Executive Officer Frank Poore.
CommerceHub was taken private in 2018 when it was acquired for $1.1 billion by GTCR and Sycamore Partners. Its business has grown since then, Poore said. CommerceHub helps connect retailers like Walmart Inc. and Home Depot Inc. with suppliers. The company works with more than 15,000 retailers, brands and distributors.
The e-commerce surge resulting from the coronavirus pandemic has been a boon for CommerceHub, Poore said.
“We’ve done exceptionally well this year,” he said, adding that about $25 billion in gross merchandise volume was transacted through CommerceHub in the past 12 months.
In-store retail may take back some sales once businesses fully re-open, but not all of them, Poore predicts.
“I would suspect that there will be some dip,” he said. “But I think a lot of these changes are permanent.”