Custom manufacturing company PCH International has acquired US-based e-commerce company Fab for an undisclosed amount of cash and equity.
PCH’s interest was first reported in November 2014, when Fab was reportedly looking for $15m to $50m. Reports since have claimed the price was set to be $7m in cash and $8m in stock.
Founder Jason Goldberg will reinvest the funds gained from the acquisition deal in his new startup, Hem, a furniture design company spun out of Fab. Fab’s shareholders will hold the same stake in Hem as they did in Fab.
Fab was founded in 2010 as a social network for gay men, but pivoted the following year to a daily deals e-commerce website on which designers could sell their products.
The company raised approximately $336m over five funding rounds, including a $150m series D round in June 2013 backed by internet company Tencent, conglomerate Itochu, Docomo Capital, the corporate venturing arm of mobile network NTT Docomo, Atomico, Andreessen Horowitz, Menlo Ventures, RTP Capital, Pinnacle Ventures and Lars Hinrichs.
Media companies Times of India Group and Washington Post Company have invested in Fab in the past but are not listed on the company’s website as one of its current investors, which also include Baroda Ventures, First Round, SoftTech VC, Zelkova Ventures and A-Grade Investments.
General manager Renee Wong and 35 other employees will remain with Fab while Goldberg has stepped down as chief executive and left the company.
Liam Casey, founder and chief executive of PCH, said: “We see an opportunity to reinvigorate the Fab audience – keeping the current focus, and adding a variety of more distinct and exclusive goods from designers.
“And because Fab has a flexible and dynamic technology platform, we have a good foundation to test new selling modes that will excite customers.”