Wix.com Ltd. (Nasdaq: WIX) has acquired m-commerce apps developer Appixia Ltd., using a small part of the proceeds from its IPO in late 2013. Wix did not disclose the amount of the acquisition, but it was reportedly not large. Wix said that the acquisition would not affect its non-GAAP results.
"Appixia is the perfect addition to the Wix platform. It truly embraces our mission of bringing the most function-rich and innovative technological solutions to users, regardless of their technical ability or budget," said Wix chairman and CEO Avishai Avrahami. "Native mobile apps are a huge part of managing and promoting a business online. Expanding the range of mobile solutions we provide our customers with is a strategic focus for Wix, and by integrating Appixia's technology we can more quickly boost and further diversify our mobile offering."
Wix, founded in 2006, has developed a DIY website building platform. In the past few months, it has expanded the solution to adapt website built by its platform for mobile sites. Appixia's m-commerce app developer supplements Wix's technology.
Wix VP product Reuven Sherwin told "Globes" that it was now possible to add apps to smartphones that offer camera integration, location-based services, and other capabilities. "Appixia's technology allows anyone with an m-commerce site to easily produce by themselves a mobile app that exploit's the device's capabilities," he said.
Appixia was founded in 2012 by CEO Yigael Berger and Tal Kol, and they are the company's sole employees. They met at the IDF's Unit 8200 and jointly developed the company's technology. Appixia participated in the Microsoft Israel Venture accelerator. Until now, the company has operated with its own financing, and Wix made the acquisition offer as the company was preparing for its first financing round.
"We preferred cooperating with Wix, because entering a company like this realizes our vision," Berger told "Globes". "Hooking up our product with a huge engine like Wix is simply fantastic and our technology will reach many more people." He added, "Our product is free and only a big customer pays."
This is similar to Wix's model, which offers its basic site creation for free, but charges for various add-ons.
"Appixia is unique, because its small and high-quality team created important breakthrough technology. We're very enthusiastic about the technology and we think that our world is going to be very interesting."
"Globes": With $100 million, will there be more acquisitions?
Sherwin: "When we held the IPO, we explicitly said that we were looking at possible acquisitions, though there was nothing specific. If we find synergy and interesting solutions, we can definitely acquire them."
Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2014
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