The ecommerce company Rokt will acquire AfterSell, the companies announced on Jan. 11. They did not disclose specific terms of the deal, which is expected to close by Feb. 1.
AfterSell is a Shopify partner that helps retailers create customizable checkout and post-purchase experiences. It has more than 20,000 clients, per AfterSell’s LinkedIn page. With the purchase, Rokt, which has an existing tech portfolio, will gain access to AfterSell’s client base and the ability to expand its offerings to small and medium-sized businesses.
Rokt and AfterSell
AfterSell’s customers include Good American, KitchenAid and Bloom Nutrition, according to a press release. In Rokt’s deal to acquire AfterSell, the software company will also gain access to Rokt’s AI technology and resources, according to Rokt’s announcement.
“AfterSell has built a brilliant roster of SMB clients on Shopify and has garnered hundreds of five-star reviews from merchants, which is a testament to how well it delivers,” said Bruce Buchanan, CEO of Rokt. “This acquisition strengthens our competitive advantage by enabling us to better serve SMB customers and provide access to advertisers that aren’t typically available to them. We’re also thrilled to bring the AfterSell team’s knowledge and expertise into our organization.”
Rokt’s checkout optimization feature will integrate AfterSell through Shopify, with the combined features under the name “Rokt ecommerce.” Rokt Shopify app users will have access to features from AfterSell to grow revenue through improving customer experience, Rokt said.
AfterSell employees will join Rokt, with plans to “grow significantly” in 2024, it said.
Details of the acquisition
The deal was made through a blend of cash and equity, Buchanan and AfterSell co-founder Dhruv Patel said.
Rokt and AfterSell spent nine months in an exploratory period, followed by a three-month period to get the two companies acquainted, Axios reported. Prior to the deal, AfterSell considered other potential acquisition options and funding rounds.
“We wanted to accelerate towards helping more merchants drive more value per transaction. It seemed like a natural strategic fit with Rokt,” Patel said.
Rokt’s path toward an IPO
Rokt is growing and making acquisitions in preparation for an unscheduled future IPO. The company previously expected to make its market debut in 2023, which did not happen. The company will not have an IPO for at least the first six months of 2024, Buchanan told Axios. Timing depends on market conditions, he said.
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