Victoria-based holding company WeCommerce is set to acquire KnoCommerce for $2.6 million CAD ($2.1 million USD) in cash and an earn-out based on revenue growth for the 18-month period after the deal closes.
Created in 2019, WeCommerce is an acquirer of Shopify partner ecosystem companies. It focuses mainly on SaaS, digital goods, and businesses that build apps and themes.
WeCommerce’s owned companies and brands include Pixel Union, Out of the Sandbox, Yopify, SuppleApps, Rehash, Foursixty and Stamped.
The TSX Venture Exchange (TSXV)-listed company was co-founded by board chairman Chris Sparling and director Andrew Wilkinson. In addition, Sparling and Wilkinson are the co-founders and managing partners of Tiny Capital, a venture capital firm also based in Victoria.
In a string of new hires and executive switchups, David Charron was appointed as the company’s chief financial office in November, as Susan Min stepped into the role of general counsel and corporate secretary in September.
Alex Persson was promoted to CEO of WeCommerce in December, moving from the role of president. He joined the company in 2020, overseeing acquisitions and managing the company’s portfolio.
As the CEO to lead KnoCommerce’s acquisition, Persson noted that brands such as OLIPOP, Pura Vida and Vita Coco use KnoCommerce’s platform to “power” customer attribution.
KnoCommerce, marking WeCommerce’s third announced acquisition since it went public on the TSXV in December 2020, will operate independently and continue to be led by its current CEO Jeremiah Prummer. This is WeCommerce’s ninth acquisition overall.
Launched in 2021 and incubated in Shopify agency Lunar Solar Group, Salt Lake City-founded KnoCommerce uses advanced zero-party data collection and segmentation to help brands understand their customers. It helps merchants build actionable customer data through embeddable surveys and response-driven actions.
RELATED: WeCommerce going public to further strategy of buying Shopify ecosystem companies
A spokesperson for WeCommerce said KnoCommerce’s acquisition “aligns with [its] strategy of acquiring, investing in and building the leading ecommerce technology companies.”
WeCommerce has been active in its acquisition strategy for the past two years. In 2021, it acquired all of the assets of Toronto’s Archetype Themes for up to $40.25 million CAD and closed its purchase agreement with Stamped.io for up to $110 million USD.
These deals are fueled by WeCommerce’s $33.7 million bought deal financing last July.