LightInTheBox’s shares add 20 percent after Ador’s buyout

China-based online retailer LightInTheBox Holding Co Ltd-ADR (NYSE:LITB) made it to the front page after its stock topped the chart, adding 20.4 percent on the wake of its acquisition of American and privately held online clothing retailer Ador. LightInTheBox shares owned the session Tuesday

after the Chinese e-commerce site announced it had acquired online fashion retailer and social magazine Ador. LightInTheBox floated in June 2013 at 6 dollars apiece.

Six

months later and once secured their first office in the US, the stock gained over 20 percent on the back of the news of having bought Ador.

LightInTheBox jumped to 9.81 dollars, the highest since November, 2013, in a rally that helped erase a loss since the company’s June IPO. The stock lost 15 percent last year, the only decline among eight Chinese companies that completed their U.S. IPOs in 2013, reminded Bloomberg.

Despite the company’s unexpected third-quarter loss, the market advances a “robust 27 percent top-line growth this year, which seems to be enough to justify a forward P/E of 44,” according to data analysed by the ‘Motley Fool’.

Although financial details of the transaction weren’t disclosed, LightInTheBox explained it has been all-cash deal which has provided them with their first office in the United States.

“The establishment of a US office for LightInTheBox through this transaction brings us closer to our customers, and provides us the opportunity to acquire an extremely talented team,” said LightInTheBox’s chairman and CEO is Quji “Alan” Guo commenting the news.

Ador’s acquisition opens doors of the US market to LightInTheBox

Despite the financial terms have not been disclosed, it has been announced that the Ador's team will join LightInTheBox as its first US office, with CEO Mark Stabingas assuming the position of President at the Chinese e-commerce platform and Quinten Shay Senior VP.

Additionally, LightInTheBox co-founders Kevin Wen and Liang Zhang will become Executive VPs.

Market insiders have stressed the enormous experience that Stabingas - who previously carried responsibilities at Amazon Payments and Amazon's US – and Shay, who used to lead Amazon's international technical team.

Ador is a branch of Lockerz.com, an invitation-only site that generates revenue from both e-commerce and advertising.

LightInTheBox launched in 2006 and currently focuses on selling to consumers outside of China, as the own company explained in 2013 when released documentation to set the path for their IPO. The Chinese online retailer raised 79 million dollars when it floated last June.

Almost half of its sales come from consumers in Europe, while North America accounts for nearly a quarter and the rest comes from Latin America and other Asian countries.