PCH in talks to buy Fab.com for $15 million

E-commerce site has had a ‘gruelling year’

Fab.com began as a gay social network before it pivoted into an e-commerce site selling everyday design products like tables, clocks and posters.

Fab.com began as a gay social network before it pivoted into an e-commerce site selling everyday design products like tables, clocks and posters.

 

PCH, the technology supply chain business founded by Liam Casey, is in talks to acquire Fab, an online design product retailer for a reported $15 million (€12 million).

Fab was valued at $1 billion in June 2013 when it raised $150 million in a round that was led by Tencent, a Chinese internet giant.

PCH is in talks about a cash- and share-based offer for Fab.com according to Techcrunch an online technology news website.

PCH declined to comment when contacted about whether it was interested in acquiring Fab.

A source with knowledge of the deal confirmed to The Irish Times that discussions were taking place but said a deal is still some way from being finalised.

PCH has previously stated that it was interested in growing by acquisition as its revenues pass the $1 billion mark this year.

It has also said that it wanted to develop new ways to sell products manufactured in China directly to consumers in order to provide a one-stop shop to hardware entrepreneurs. Fab.com would be a good fit with its stated business model.

In January PCH acquired ShopLocket , an innovative Toronto-based e-commerce platform, in a move that company founder Mr Casey said put his business “at the intersection of hardware and e-commerce”.

Fab.com began as a gay social network before it pivoted into an e-commerce site selling everyday design products like tables, clocks and posters.

In 2012 it had sales of $120 million but the company has struggled more recently as key executives left and new competitors challenged it.

In September Fab chief executive Jason Goldberg told the Wall Street Journal in an email that “Fourteen months ago Fab was burning $12 million in cash per month and after a gruelling year of restructuring and retooling today we are closer to $1 million per month. It was a hell-ride to go through it but we’re better off for it.” Fab did not respond to requests for comment.