E33: Syndigo’s Billion $ Acquisition of 1WorldSync

Description

Summary

In this episode, co-hosts Ayelet Shipley and Christian Hassold welcome guests Erik Morton, former EVP of Corporate Development for Rithum (formerly CommerceHub & ChannelAdvisor), and Chris Barnes, former SVP of Corporate Development for Syndigo, to discuss the announced acquisition of 1WorldSync by Syndigo. In this episode, the guests discuss the origin of both Syndigo and 1WorldSync, the deal rationale, as well as some of the reasons why the acquired business had some potential barriers to finding the right acquirer over the course of its year long sale process. The discussion highlights the dynamics of M&A in the e-commerce sector, the competitive dynamics between major players like Syndigo, Bazaarvoice, and Salsify, and the prospects of inorganic growth following years of aggressive M&A activity.

Takeaways

Syndigo’s growth trajectory from Gladson to a materially sized platform in the commerce ecosystem
1WordSync’s origin and significance in the product information space
The competitive dynamics between 1Worldsync, Syndigo, and Salsify in the commerce market
The significance of geographical expansion in M&A strategies.
The importance and benefits of strong alignment between sponsors and holding company executive leadership on M&A strategy

Chapters

0:12 Deal Context

1:43 Guest Backgrounds

5:48 Syndigo Founding and Acquisition Strategy

9:32 Investor View on Syndigo’s M&A Thesis

13:47 1WorldSync Origins and Strategy

18:07 PowerReviews and Strategic Misalignment

22:09 Syndigo Deal Execution and Private Equity Dynamics

24:04 Running Out of Targets

25:40 Industrial Logic Behind the Merger

27:39 Competitive Landscape and Salsify

30:49 Future Outlook on Marketplaces and IPO