Core Insights - GigaCloud Technology Inc has entered into a binding term sheet to acquire New Classic Home Furnishing, Inc for $18 million, aiming to enhance its B2B marketplace capabilities [1][3] Company Overview - GigaCloud Technology Inc specializes in global end-to-end B2B technology solutions for large parcel merchandise, integrating various services into its ecommerce platform known as the "GigaCloud Marketplace" [5] - New Classic Home Furnishing, Inc is a profitable furniture distributor with 25 years of experience, generating approximately $70 million in annual revenues and servicing over 1,000 retailer customers [2] Strategic Rationale - The acquisition is expected to strategically combine GigaCloud's ecommerce expertise with New Classic's established brick-and-mortar presence, enhancing the value offered to retailer customers [2][3] - New Classic sources its products primarily from Southeast Asia and the United States, with less than 3% sourced from China, which diversifies GigaCloud's supply chain [2] Financial Details - The total consideration for the acquisition is $18 million on a debt-free basis, subject to customary net working capital adjustments, and includes a post-close earn-out based on recurring revenue milestones in 2026 [3] - The transaction will be funded from GigaCloud's existing cash reserves [3] Transaction Timeline - The acquisition is expected to close on January 1, 2026, pending customary closing conditions [4]