After passing the $1B value mark Wix goes shopping: Acquires Appixia
Wix, which went public late last year, is now helping another Israeli startup exit
Website building platform Wix.com Ltd. on Thursday, March 13, announced that it acquired Israeli startup Appixia for an undisclosed price. The deal marks the first acquisition for Wix since it went public in November.
“Appixia is the perfect addition to the Wix platform,” Avishai Avrahami, Wix’s co-founder, CEO and chairman, said in a statement. “It truly embraces our mission of bringing the most function-rich and innovative technological solutions to users, regardless of their technical ability or budget.”
The acquisition may not be the last for Wix, which said in Securities and Exchange Commission documents that it would use the $127 million in proceeds from its IPO to “make acquisitions or investments in complementary companies or technologies.”
Appixia is a platform for building native mCommerce apps with features such as push notifications, barcode scanning, location-based services, credit card scanning and others. Both Wix and Appixia provide small businesses with code-free solutions for website creation, ecommerce capabilities, business management tools and mobile applications.
“Native mobile apps are a huge part of managing and promoting a business online,” Avrahami continued. “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.”
In October, Wix launched its own mobile adaptive solution and by Dec. 31, 1.6 million mobile sites had been created on its platform. Wix users create more than 30,000 new mobile sites daily, according to the statement.
Graduating from the startup world
The acquisition is Wix’s first big play since the Israeli company exited the startup scene with its IPO on the NASDAQ exchange. The Nov. 6 IPO raised $127 million, valuing the company at $760 million. The company did, however, have a net loss of $28.7 million for the year ending Dec. 31, 2013.
At the start of trading on March 13, Wix’s stock was selling at $27.73 per share, up from the $16.50 IPO price.
Wix was founded in Tel Aviv in 2006 by Abrahami, his brother and VP Nadav Abrahami, and CTO Giora Kaplan. The company employs 550 people and has 45.2 million users in 190 countries. The company has satellite offices in San Francisco, New York, Vilnuis and Dnepropetrovsk.
Appixia is a graduate of the Microsoft Ventures Accelerator and was in the middle of seeking its first round of funding when the Wix opportunity came up, according to the statement. It was founded by Yigael Berger and Tal Kol in 2012.