Shopping site Fab.com has officially been acquired by PCH International, a company that helps startups design and manufacture hardware products. Rumors of a sale began as far back as August 2014, and now the merger is complete, at an undisclosed price.
Liam Casey, CEO of PCH, declined to give a price to Re/code, but last month the sale was estimated to be around $7 million in cash and $8 million in stock, based on the latest refinancing round.
PCH will employee Fab's 35 staff members. However, co-founder and CEO Jason Goldberg will not be joining PCH. He is focused on a new project, Hem—a company that makes and sells furniture. The new venture already employs more than 100 previous Fab employees.
PCH is planning on using Fab as a sales channel for the hardware products. Casey said Fab's current shipping model is friendly to hardware startups that get taken advantage of by the economics of brick-and-mortar retail.
"In our business, inventory is evil," Casey told Re/code.
Fab launched in 2011 and raised more than $300 million but grew its product catalogue too much and marketing spending spiraled out of control. In 2013, the company was valued at approximately $1 billion and employed 750 people.
-See this Re/code article
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