CLIENT
Fifth Gear is a rapidly growing tech-enabled eCommerce services company that provides order management, fulfillment, value-add processing, contact center, freight management, account management, and business support services to e-commerce retailers, catalogers, and brand manufacturers. Its customers include some of the largest and most progressive brands in the world of direct-to-consumer retail, along with highly successful niche retailers across industries.

SITUATION
Fifth Gear was seeking the right strategic buyer to support the next phase of its rapid growth plan. Becoming part of larger organization was considered an important strategic step for its go-to-market offering. By combining unique complex fulfillment capabilities with a fully integrated e-commerce services platform, Fifth Gear will deliver a more seamless online shopping experience and better fulfill the ‘brand promise’ that its clients make to their customers every day.

ENGAGEMENT
G2 Capital Advisors was engaged to act as the exclusive advisor responsible for running a targeted, discreet, and high-touch sale process for Fifth Gear.

“The G2 Capital Advisors team executed a well-developed and thoughtful sell-side process for Fifth Gear,” said Matt Konkle, President of Fifth Gear. “Their understanding of our industry and relationships across our sector proved to be both valuable and insightful as we executed our transaction with Speed Commerce.”

OUTCOME
The transaction was successfully executed through a sale to Speed Commerce, Inc. (Nasdaq:SPDC) – a leading provider of omni-channel eCommerce services including web development and hosting, managed and marketing services, order and inventory management, pick and pack, returns processing, and 24/7 customer care. Total consideration included $55 million in cash paid at closing with an additional contingent payment based on future performance – which makes for a total enterprise valuation of about 1x revenue.