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M&A‌ ‌Report:‌ Zipwhip, Depop and Novy In‌ ‌the‌ ‌News‌ ‌

M&A‌ ‌Report:‌ Zipwhip, Depop and Novy In‌ ‌the‌ ‌News‌ ‌

In‌ ‌keeping‌ ‌with‌ ‌our‌ ‌mission‌ ‌to‌ ‌provide‌ ‌comprehensive‌ ‌advertising‌ ‌analysis,‌ ‌MediaRadar‌ ‌puts‌ together‌ ‌a‌ ‌report‌ ‌of‌ ‌the‌ ‌most‌ ‌important‌ ‌mergers‌ ‌and‌ ‌acquisitions‌ ‌news‌ ‌each‌ ‌week.‌ ‌Stay‌ ‌in‌ ‌the‌ loop,‌ ‌whether‌ ‌you‌ ‌sell‌ ‌advertising‌ ‌space‌ ‌or‌ ‌focus‌ ‌on‌ ‌business‌ ‌development.‌ ‌ 

This‌ ‌week, Twilio bought Zipwhip to strengthen its messaging capabilities. Etsy acquired secondhand shopping platform Depop and The Middleby Corporation added Novy to its portfolio.

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Twilio gains Zipwhip to strengthen messaging services

Cloud communications platform Twilio has finalized its deal to acquire Zipwhip  in a cash and stock transaction valued at approximately $850 million. 

Zipwhip provides tool-free messaging services, which Twilio plans to use to strengthen its messaging products. Zipwhip currently does business with 30,000 customers, and has grown more than 400% in the last 3 years. 

According to CB Insights, the global cloud communication platforms market is projected to grow at an annual rate of 28%, to $8.45 billion by 2027. Last year, Twilio acquired customer data platform Segment for $3.2 billion.

Etsy purchases Depop to attract younger buyers

Etsy has announced it is acquiring Depop, a secondhand shopping platform, for $1.625 billion. 

Depop has attracted a younger generation of influencers and social media users who use the platform to sell used goods as an online vintage store. The deal is an attempt to attract a younger generation of shoppers. 

According to Etsy, 90% of Depop’s users are under 26, while the average Etsy user is approximately 39. 

Depop is also the tentth most visited shopping site for Gen Z consumers in the U.S. The deal is an opportunity for Depop to draw on Etsy’s strategy and begin to grow internationally.  

The Middleby Corporation acquired Novy

The Middleby Corporation has announced it acquired Belgium-based premium residential appliance brand Novy. 

The acquisition will expand Middlyby Residential’s portfolio of offerings in the built-in residential segment and grow its market reach internationally. 

Novy currently generates annual sales of around $90 million. Financial terms of the deal have not been made public. Following the acquisition announcement, J.P. Morgan analyst Thomast Simonitsch increased the price target on Middleby to $194 from $180, and reiterated a “buy” rating on the stock. 

In‌ ‌Other‌ ‌News‌ ‌

Here are other deals in the works this week:

  • The gambling conglomerate, Bally’s Corporation has acquired the Association of Volleyball Professionals (AVP), continuing a trend of rapid expansion.
  • Fintech company, owned by Twitter CEO Jack Dorsey, Square has acquired Crew, a messaging platform for employees and workplaces that also helps manage and organize workflow schedules. 
  • Private equity firm Thoma Bravo has struck a deal to acquire in an all-cash transaction that values the e-commerce shipping software company around $6.6 billion.
  • Fortive Corporation announced that it has entered into an agreement with Bayard Capital and Accel Partners to acquire ServiceChannel for $1.2 billion.
  • Microsoft Corporation announced that it is acquiring San Francisco-based cybersecurity company RiskIQ. The financial terms of the deal were not disclosed, but Bloomberg reported that it is more than $500 million.  
  • Sycamore Partners announced that it is acquiring Ste. Michelle Wine Estates from tobacco giant Altria for $1.2 billion. 
  • According to the Wall Street Journal, athleisure brand Fabletics has hired investment banks to prepare for its upcoming initial public offering that could value the brand at more than $5 billion.