ATTRAQT Group, the leading European online search and visual merchandising platform for e-commerce sites, has officially announced its acquisition of a peer firm SDL Fredhopper. The conditional acquisition agreement puts the arrangement at around $25 million, subject to certain adjustments. The addition will enable ATTRAQT to accelerate its objective in becoming a global go-to e-commerce SaaS provider for visual merchandising powered by investment in sales and marketing, customer support and product development.
“I am delighted to be announcing this transformational deal for the company. The acquisition is a significant step and immediately establishes the new group as the clear global leader in online visual merchandising. As a combined business, we will bring together the very best solutions available in the market to become the go-to company for all visual merchandising needs,” said Andre Brown, CEO, and Founder of ATTRAQT Group plc.
“This transaction has been driven by the growth potential available to the combined business and has been backed by a group of leading UK technology investors who share our vision and ambitious growth plans. In the short term, the two businesses will continue to be run relatively independently, to ensure a considered and thoughtful integration.”
ATTRAQT, formerly known as Locayta, offers full-fledged search and visual merchandising services through its centralized cloud-based SaaS platform. Fredhopper’s acquisition is yet to be approved by the shareholders. Once approved, the acquisition will allow the London-based e-commerce SaaS provider to expand its base across Europe, Asia, and the US. Fredhopper, also a cloud-based merchandising solutions provider, currently provides onsite search and navigation, as well as real-time recommendations based on omnichannel personalized search results.
By adding Fredhopper, ATTRAQT becomes a one-stop e-commerce SaaS platform providing site search, visual merchandising, and product recommendations. Both companies have registered positive revenue growth for 2016. ATTRAQT’s revenue grew 22% to $4.54 million in 2016 from $3.65 million the year before.
“As independent companies, ATTRAQT and Fredhopper have each built strong reputations, delivering products that significantly improve conversion rates and increase sales for their 250 e-commerce retail customers,” said Nick Habgood, Chairman of ATTRAQT.
“Bringing the two businesses together will allow us to accelerate investment in sales and marketing, customer support and in on-going product development. Increasing our presence in the important North America market is a particular focus. Our objective is to deliver strong profitable growth whilst becoming a global technology partner of choice to leading online retailers,” Habgood said.
“I’m pleased to report another year of good progress with the group continuing to grow both its revenues and client base in the UK and North America, whilst at the same time increasing gross margin. We have signed 42 new deals in the period, including several large global retailers and have delivered a 22% increase in revenue for the year,” said Andre Brown, CEO of ATTRAQT. “Our objective is to deliver strong profitable growth by becoming the clear global leader in online visual merchandising,” he added.
ATTRAQT’s revolutionary online visual merchandising tool is currently used by 100+ retailers to drive higher conversion rates and achieve enhanced online sales. Fredhopper’s search solutions will dramatically improve customer experience providing more intelligent recommendations to garner positive growth in customer loyalty and retention.