Online grocery shopping platform Boxed and Seven Oaks Acquisition Corp. have agreed to a merger that will turn Boxed into a publicly traded company. Under the terms of the transaction, Boxed and Seven Oaks will merge with a pro forma combined equity value of approximately $900 million. Boxed will continue to be led by CEO Chieh Huang, while the Seven Oaks CEO Gary Matthews will become Chairman of the Board after the business combination is completed.
Boxed’s ecommerce platform, which the company calls a ”curated, mobile-first, basket-building shopping experience,” is available for both B2C and B2B customers. The retailer’s average order value is approximately $100 with an average of eight items per order. The retailer also is monetizing its proprietary end-to-end technology through a SaaS offering.
“We are excited to take this important step forward to position Boxed for our next phase of growth,” said Huang in a statement. “This transaction will allow Boxed to capitalize on the tailwinds that ecommerce businesses are experiencing. This capital will also allow us to fund B2B growth, third-party marketplace expansion and drive our unique SaaS business. We look forward to partnering with the seasoned team at Seven Oaks as we leverage their operational and public company expertise.”
The Boards of Directors of both Seven Oaks and Boxed have approved the transaction, but it still requires approval from the stockholders of both companies and is subject to other customary closing conditions, including regulatory approvals. The merger is expected to close in Q4 2021.