Tax-free shopping company Global Blue has agreed to acquire ZigZag, a SaaS tech platform that helps retailers manage their eCommerce returns and exchanges.
The NYSE-listed company raised $70 million of equity capital, via a private placement of common stock to new institutional investors, to fund the acquisition which is expected to close by the end of March.
eCommerce returns are known to be a potential problem point for retailers, with more than 40 per cent of orders on average said to being returned.
ZigZag’s platform addresses this issue – replacing the traditional paper-based label in the box solution – by digitalising the eCommerce returns process. Its online returns portal offers a broad range of shipping options, including post office, parcel shops, lockers and collection from home, as well as exchange alternatives.
ZigZag’s logistics network includes over 450 carrier services and 220 warehouses in 130 countries. With the solution currently being used by around 100 global retailers.
Global Blue says it will benefit from ZigZag’s eCommerce expertise, with the deal enabling it to extend its client services to include global eCommerce returns management. While ZigZag will be able to enhance its rapid growth by cross selling its solutions into Global Blue’s extensive merchant network. It will also be able to offer Global Blue’s payments and data services.
Jacques Stern, CEO and president of Global Blue, said: “With this first acquisition since our listing on the New York Stock Exchange in August 2020, Global Blue has the ambition to become a strategic omnichannel technology and payments partner empowering merchants to capture growth opportunities.
“ZigZag is an exciting, fast-growing, emerging leader in eCommerce. The synergies between the two companies are strong and will help both of us to grow faster.”
Al Gerrie, CEO and founder of ZigZag, said: “As a market leader focused on technological innovation for merchants and consumers, Global Blue is an ideal fit for ZigZag. We are confident that our partnership and our ambitious joint investment plan will accelerate our growth even further.”
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