Israel's MySize acquires omnichannel e-commerce platform Orgad

Its team consists of solid operators with deep understanding and knowledge in e-commerce, supply chain and technology. Orgad’s focus on technology, operations and customer service to increase efficiencies and revenue growth is structured on a platform that is able to manage numerous retailers. Additionally, Orgad will integrate MySizeID into its digital offerings and platform. Incorporating MySizeID into Orgad’s e-commerce solution is expected to increase its operational profit by reducing costly returns, MySize said in a press release.

Under the transaction terms, MySize agreed to pay to the Orgad sellers cash consideration of up to $1 million in three instalments over a period of 3 years, equity consideration of up to 2,790,049 shares of MySize common stock, and certain earn-out payments upon meeting revenue targets, subject in each case to the sellers being engaged with Orgad at the time each payment is due and subject further to post-closing adjustment.

“We look forward to working with MySize and becoming part of a publicly listed company. We have identified additional e-commerce global opportunities that would benefit from our e-commerce platform and digital management expertise. We look forward to scaling our business and working with the existing team at MySize,” Elad Bretfeld, founder of Orgad, said in a statement.

“This is a major strategic move by MySize as we are expanding our business to also be a direct e-commerce seller. The Orgad team has built a strong business as a direct seller of clothing and footwear globally on Amazon.com, eBay and elsewhere. By using MySize technology Orgad will be able to increase its profitability by increasing conversion rates and reducing costly returns, which also improves their sustainability,” Ronen Luzon, chief executive officer of MySize, said.

“We will continue to evaluate additional proven e-commerce sellers. Our acquisition strategy is to bring vendors product selections to our customers. Our infrastructure of R&D and sales and marketing is in place and ready to increase revenues and improve margins as we scale. We plan to expand our business rapidly by increasing the number of business managers, vendors and SKUs, which can also utilise MySizeID and SizeUP for the DIY market,” Luzon, said.

Fibre2Fashion News Desk (GK)