Aterian Announces Closing of Acquisition of Health and Wellness Brand
October 04 2022 - 04:31PM
Aterian, Inc. (Nasdaq: ATER) (“Aterian” or the “Company”) today
announced the closing of the previously announced acquisition of
the assets of a brand in the health and wellness category. The
Company believes that the acquisition will be accretive; expanding
and securing market share in an existing portfolio brand’s
category. The specific terms of the acquisition were not disclosed.
Yaniv Sarig, Co-Founder and Chief Executive
Officer, commented, “We are excited to resume our M&A strategy
notwithstanding the challenging environment. This small acquisition
builds on and strengthens our market share in a specific product
category.” Mr Sarig continued, “We believe that our patient
approach to our M&A strategy over the last year is paying off
as we are starting to see acquisition costs normalize. Given this
trend, the recent strengthening of our balance sheet and the
decline of container shipping costs, we continue to believe that we
are well positioned to drive growth and margin expansion into
2023.”
About Aterian, Inc.Aterian,
Inc. (Nasdaq: ATER) is a leading technology-enabled consumer
product platform that builds, acquires, and partners with
best-in-class e-commerce brands by harnessing proprietary software
and an agile supply chain to create top selling consumer products.
The Company’s cloud-based platform, Artificial Intelligence
Marketplace Ecommerce Engine (AIMEE™), leverages machine learning,
natural language processing and data analytics to streamline the
management of products at scale across the world's largest online
marketplaces with a focus on Amazon, Shopify and Walmart. Aterian
has thousands of SKUs across its many owned and operated brands and
sells products in multiple categories, including home and kitchen
appliances, health and wellness, beauty and consumer
electronics.
Forward-Looking StatementsAll
statements other than statements of historical facts included in
this press release that address activities, events or developments
that we expect, believe or anticipate will or may occur in the
future are forward-looking statements including, in particular, the
statements regarding our M&A strategy, including the
normalization of acquisition costs, shipping container costs, the
macroeconomic uncertainty, growth and margin expansion into 2023,
and the anticipated use of the proceeds from the registered direct
offering. These forward-looking statements are based on
management’s current expectations and beliefs and are subject to a
number of risks and uncertainties and other factors, all of which
are difficult to predict and many of which are beyond our control
and could cause actual results to differ materially and adversely
from those described in the forward-looking statements. These risks
include, but are not limited to, those related to risks in
completing proposed M&A transactions and realizing the
anticipated benefits of such transactions; the global shipping
disruptions, our ability to continue as a going concern, our
ability to meet financial covenants with our lenders, our ability
to create operating leverage and efficiency when integrating
companies that we acquire or have acquired, including through the
use of our team’s expertise, the economies of scale of our supply
chain and automation driven by our platform; those related to our
ability to grow internationally and through the launch of products
under our brands and the acquisition of additional brands; those
related to the impact of COVID-19 and the war in the Ukraine,
including its impact on consumer demand, our cash flows, financial
condition and revenue growth rate; our supply chain including
sourcing, manufacturing, warehousing and fulfillment; our ability
to manage expenses, working capital and capital expenditures
efficiently; our business model and our technology platform; the
impact of intangible assets, such as goodwill, and other
impairments; disruptions to the Company’s information technology
systems, including but not limited to potential or actual security
breaches of systems protecting consumer and employee information or
other types of cybercrimes or cybersecurity attacks; our ability to
disrupt the consumer products industry; our ability to maintain and
grow market share in existing and new product categories; our
ability to generate profitability and stockholder value;
international tariffs and trade measures; inventory management,
product liability claims, recalls or other safety and regulatory
concerns; reliance on third party online marketplaces; seasonal and
quarterly variations in our revenue and expenses; acquisitions of
other companies and technologies and our ability to successfully
integrate such companies and technologies with our business, our
ability to continue to access debt and equity capital (including on
terms advantageous to the Company) and the extent of our leverage
and other factors discussed in the “Risk Factors” section of our
most recent periodic reports filed with the Securities and Exchange
Commission (“SEC”), all of which you may obtain for free on the
SEC’s website at www.sec.gov.
Although we believe that the expectations
reflected in our forward-looking statements are reasonable, we do
not know whether our expectations will prove correct. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof, even if
subsequently made available by us on our website or otherwise. We
do not undertake any obligation to update, amend or clarify these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws
Investor Contact:
Ilya Grozovsky Vice President of Investor
Relations & Corp. DevelopmentAterian,
Inc.ilya@aterian.io917-905-1699
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