Core Viewpoint - GigaCloud Technology Inc. is making a strategic acquisition of New Classic Home Furnishings for $18 million to enhance its logistics and furniture distribution capabilities [1][3]. Group 1: Acquisition Details - GigaCloud has entered into a definitive Share Purchase Agreement to acquire 100% of New Classic Home Furnishings, Inc. for $18 million, which will be financed using existing cash [1][2]. - The transaction is expected to close on January 2, 2026, subject to customary closing conditions [2]. Group 2: Strategic Implications - The acquisition aims to integrate New Classic's distribution and furniture-supply capabilities with GigaCloud's e-commerce and large-parcel logistics platform, enhancing its market presence [3]. - New Classic has a legacy of approximately 25 years in furniture distribution, serving over 1,000 retailer clients and offering more than 2,000 SKUs, which strengthens GigaCloud's footprint in the home-furnishings sector [3][4]. - By incorporating New Classic, GigaCloud diversifies its supply chain, with New Classic sourcing predominantly from Southeast Asia and the United States, and less than 3% from China [4]. Group 3: Company Overview - GigaCloud Technology Inc. is a global B2B e-commerce and logistics company based in El Monte, California, operating the GigaCloud Marketplace for large-parcel merchandise [5].

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]