SellerX, one of the biggest ecommerce aggregators in Europe, has signed an agreement to acquire Elevate Brands, a leading U.S.-based aggregator of ecommerce businesses.

The role that aggregator companies play in the world of B2C and B2B ecommerce is multifaceted

  • Swallow up smaller sellers that sell on Amazon and other marketplaces.
  • Consolidate on a central technology, market, and supply chain platform.
  • Scale the business the combined acquisitions from there.

SellerX ecommerce aggregation

Now, it seems one of the biggest aggregators has swallowed up a smaller but significant U.S. competitor.

SellerX is one of the biggest ecommerce aggregators in Europe. It has signed an agreement to acquire Elevate Brands, a leading U.S.-based ecommerce-business aggregator. The combined companies will form SellerX Group and become a global consolidator of ecommerce brands with a diversified portfolio spanning over 40,000 consumer products.

The combined business will have a strong global footprint and sales of over €400 million ($437.58 million), SellerX says.

“This acquisition brings together two key players in the aggregator space,” SellerX says. “Bringing together complementary global footprints, the joint business will cover both the European and U.S. markets with a roughly even revenue split across the two regions.”

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The combined companies will offer over 80 Amazon private label consumer brands in the segments of:

  • Sports and outdoors.
  • Home and kitchen.
  • Mobile accessories.
  • Pets.
  • Consumables.

Founded in 2020, Berlin-based SellerX manages more than 50 European ecommerce brands. Austin, Texas-based Elevate Brands has a portfolio of 32 brands.

“By leveraging our combined strengths, I am convinced we are well-positioned to drive further consolidation in the industry,” says SellerX CEO Philipp Triebel.

Prior to the merger, which SellerX expects to complete by the end of the month, both aggregator companies were well funded. Since launch, SellerX raised nearly $900 million in equity and debt. It is valued at more than $1 billion. Meanwhile, Elevate has raised about $250 million, according to TechCrunch.com.

The idea of businesses raising money to pursue Amazon-like economies of scale looked smart and bankable.

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“There are tens of thousands of individual retailers selling across big online marketplaces, and it seems like a no-brainer that this fragmented space would need consolidation and exit options for those retailers,” TechCrunch says. “But the funding landscape has gotten significantly more constricted in the last 18 months, and many investors have become jumpy pouring large sums of money into startups that have not been able to turn a profit. So, it only felt like a matter of time before the consolidators themselves — these aggregators — would start to get consolidated, too.”

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