Wix buys brand promotion agency Gefen Team

Avishai Abrahami Photo: Yonatan Bloom

The acquisition of Tel Aviv-based Gefen Team will push forward Wix's vision of becoming one of the world's top and best-loved brands.

Israeli free website design company Wix.com Ltd. (Nasdaq: WIX) has acquired Tel Aviv-based brand promotion agency Gefen Team. Financial details about the acquisition were not disclosed but the amount is not material and will make no great dent in Wix's cash reserves of $789 million, as of the end of the first quarter of 2019. Gefen team's entire staff will join Wix's marketing department in a unified creative brand department led by Eran Gefen.

Gefen Team was founded in 2013 to develop creative and innovative solutions to promote major international brands. Customers include Coca Cola, Microsoft and SodaStream. Wix and Gefen Team have collaborated in the past on the 2016 US Superbowl Kung Fu Panda ad for Wix.

Wix was founded by CEO Avishai Abrahami to enable users to set up, design and manage professional websites. Over the years, Wix has made several acquisitions including Israeli startups OpenRest, Appixia and Moment.Me. However, the acquisition of Gefen Team is different in that it has not been made to extend Wix's platform but rather strengthen its brand.

Wix VP marketing Omer Shai pointed out that Wix has an impressive record of marketing and ad campaigns developed by its team of over 200 employees including five Superbowl ads and sponsorship of major sports teams in the US, England and Latin America.

Shai said, "We have set a target of becoming one of the world's 100 strongest and best-loved brands. We are preparing to achieve this aim by building a creative department within the company through a deep understanding of the product and the needs of our users. I feel sure that with the addition of Gefen Team to our staff, we have made a major step towards this aim."

Gefen Team founder Eran Gefen said, "My team and I are very excited about joining Wix. We will take our creative and innovative talents to the next stage in leading an international brand."

Wix's share price rose 3.25% on Nasdaq on Friday to $139.24, giving a market cap of $6.943 billion.

Published by Globes, Israel business news - en.globes.co.il - on May 19, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Avishai Abrahami Photo: Yonatan Bloom
Avishai Abrahami Photo: Yonatan Bloom
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