Strategic Expansion to E-Commerce and Digital Management
MySize, Inc., the provider of AI-driven measurement solutions to drive revenue growth and reduce costs for its business clients, is pleased to announce that it has acquired Orgad, an omnichannel e-commerce platform. Orgad is headquartered in Israel and operates globally, including the U.S. and Europe.
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Orgad generated approximately $2.5 million in revenue in 2021 with profitable operations. 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.
Elad Bretfeld , Founder of Orgad, stated, “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.”
Similar to Thrasio, Perch and Hour Loop, Orgad is an e-commerce platform engaged in online retailing in the global market. It operates as a third-party seller on Amazon.com, eBay and others. Orgad currently manages more than 1,000 stock-keeping units (“SKUs”), mainly in fashion, apparel and shoes, but is capable of managing tens of thousands of SKUs.
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Under the transaction terms, MySize agreed to pay to the Orgad sellers cash consideration of up to $1 million in 3 installments 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.
Ronen Luzon, Chief Executive Officer of MySize, commented, “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.”
Luzon, concluded, “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 utilize MySizeID and SizeUP for the DIY market.”
For further information regarding terms and conditions contained in the purchase agreement, please see the Company’s Form 8-K filed in connection with the transaction.