NEW YORK, April 11, 2011 /PRNewswire/ -- Gridley & Company LLC (Gridley & Co.), a New York-based boutique investment bank that specializes in the Information Services industry, today published its latest industry report, "Billion Dollar Babies: Trends and Opportunities in the New E-Commerce World." The report details the major disruptions, current market leaders, latest entrants and emerging trends that are changing the course of the e-commerce industry, while identifying the various opportunities available for businesses and investors to capitalize on the evolving e-commerce landscape.
The report, part of a Gridley & Co. series of propriety insights on specific sectors of the Information Services industry, also highlights recent mergers and acquisitions (M&A) activity, investments, likely buyers and sellers, and deal rationale behind some of the key transactions in the sector. E-commerce deals have been among the most prominent transactions in M&A, totaling more than $7.5 billion in value in 2010. Also, venture and private equity investments in the sector surpassed $2.5 billion in 2010.
"The e-commerce industry has undergone massive transformations since the launches of early industry leaders Amazon and eBay that created the backbone of the industry as we know it today. While Amazon and eBay are still dominant players, major forces of disruption have taken place in the last few years that took e-commerce to an entirely new level," said Linda Gridley, President and CEO, Gridley & Co. "The ecosystem has advanced at a rapid pace, presenting new opportunities for emerging players and challenges for traditional e-commerce players. The key to staying competitive and succeeding in making the right investments is to understand and act on the changing landscape."
"eBay's recent $2.4 billion acquisition of GSI Commerce -- eBay's largest acquisition in more than five years -- reflects the urgency and importance of companies needing to act quickly in adding new e-commerce platforms and technologies to build their businesses and maintain their leadership positions," noted Gridley. GSI Commerce is one of the many e-commerce companies Gridley & Co. has advised as part of the Company's strategic transactions in the space.
Among the noteworthy e-commerce trends covered by Gridley & Co. in the report are:
- Impact of e-commerce models converging in different marketplaces and with new disruptive business models
- How social media is driving consumption
- Continued consolidation among private sales companies
- Evolvement of daily deals / local e-commerce sector
- Mobile commerce rapidly catching up to traditional e-commerce
- Expansion of virtual goods and currencies
Key takeaways and business and investment opportunities are outlined throughout the overview, which also includes in-depth case studies on significant players like GILT Groupe, Groupon, and GSI Commerce.
More than 200 companies across the e-commerce ecosystem are referenced by subsector in Gridley & Co.'s e-commerce report:
- Traditional e-commerce leaders from retailers to third party sellers (Amazon, eBay)
- Private sales companies (GILT Groupe, Rue La La, Jetsetter)
- Daily deals companies (Groupon, Living Social, BuyWithMe)
- Push shopping and penny auction sites (ShowDazzle, BidCactus)
- Social commerce and virtual currencies (Facebook, Swipely, Blippy)
- Technology providers from infrastructure to marketing to fulfillment (Razorfish, Google, GSI Commerce, RedPrairie)
"We've seen a tremendous amount of interest in the e-commerce space and expect that investment and M&A activity in the industry will remain high," added Gridley. "Deal makers clearly see the value and attractiveness of what these companies have to offer, and the changes that have occurred over the past several years have created new opportunities for strategic and financial investors to gain a hold on the future of e-commerce."
Several of the companies listed in the "Billion Dollar Babies: Trends and Opportunities in the New E-Commerce World" report have presented at the Gridley & Company's annual Information, Marketing, Internet, Financial Technology and Outsourcing Services Conference. In 2011, 35 e-commerce companies were in attendance at the annual Gridley IDEA Conference. More than 50 percent of the private companies that have presented at Gridley & Co. conferences have completed a successful sale or fundraising transaction since their participation at the Company's annual event.
Gridley & Co. has proprietary insights on the most interesting opportunities in e-commerce today, and regularly meets with senior leaders and investors in the Information Services industry to share perspectives and exchange ideas. For more information or to arrange a meeting with the Gridley team to discuss opportunities, please call Linda Gridley at 212-400-9710.
To request a full copy of the e-commerce report by Gridley & Co., please visit www.gridleyco.com.
About Gridley & Company LLC
Gridley & Company is a New York based boutique investment bank that provides financial advisory services to companies in the Information Services industry with a specific focus on the following sectors: Marketing, Internet, Financial Technology and Outsourcing Services. Industry professionals rely on and look to Gridley for insights on M&A through proprietary annual events and its semi-annual newsletter, The Compass, which is received by over 2,200 industry professionals. Gridley's knowledge-based investment banking approach combined with its specialized expertise in information services results in optimal advice for clients and highly successful transactions. For more information, please visit www.gridleyco.com.
SOURCE Gridley & Company LLC