GigaCloud Completes $18M Acquisition of New Classic Home Furnishings
The deal adds over 1,000 retail partners and 2,000 products to GigaCloud's B2B marketplace, bolstering its presence in the large-good logistics sector.
GigaCloud Technology (NASDAQ: GCT) has finalized its acquisition of New Classic Home Furnishings, a U.S.-based wholesale distributor, for $18 million in an all-cash transaction. The move significantly expands GigaCloud’s end-to-end B2B platform, integrating a network of over 1,000 traditional retail partners and adding a portfolio of more than 2,000 furniture products.
The acquisition, funded entirely from GigaCloud's cash on hand, is a core part of the company's strategy to bridge the gap between online e-commerce and traditional brick-and-mortar wholesale for large goods. Shares of GigaCloud traded around $39.28 following the news, pushing its market capitalization to approximately $1.48 billion and keeping the stock near its 52-week high of $43.85.
Larry Wu, GigaCloud's founder, Chairman, and CEO, framed the deal as a strategic enhancement of the company's ecosystem. "Closing this acquisition represents another important step in executing our strategy to streamline large-parcel commerce," Wu stated in the official company announcement. "By integrating New Classic’s retailer customer network into our technology-enabled marketplace and fulfillment capabilities, we are creating new opportunities for retailers to compete efficiently in an increasingly dynamic trading environment."
The move comes as GigaCloud demonstrates robust financial health. The company reported strong 9.7% year-over-year revenue growth in the third quarter of 2025 and maintains a debt-free balance sheet with total liquidity of $367 million. This financial stability has enabled its strategic expansion efforts.
Analysts view the acquisition favorably, seeing it as a logical step in diversifying GigaCloud's supply chain and expanding its omnichannel footprint. A recent report on Seeking Alpha maintained a 'Buy' rating on the stock, noting that New Classic’s established network of physical retail relationships provides GigaCloud with an immediate and substantial entry into the traditional wholesale sector. The report also highlighted that New Classic sources less than 3% of its products from China, a key factor in supply chain diversification for GigaCloud.
Founded over 25 years ago, New Classic Home Furnishings has built a strong reputation as a furniture and home goods distributor based in Fontana, California. Its integration into GigaCloud’s platform, which operates on a “Supplier Fulfilled Retailing” model, is expected to create significant synergies, connecting New Classic's extensive buyer and seller base with GigaCloud's global logistics and technology infrastructure.
While the strategic rationale is clear, analysts have noted potential integration risks. Successfully managing the relationships with New Classic’s established brick-and-mortar partners will be critical to realizing the full value of the acquisition. However, the deal positions GigaCloud to enhance its value proposition for a growing base of nearly 6,000 active buyers, giving them access to a wider range of products and fulfillment options. Investors will be closely watching the company's upcoming quarterly results to assess the initial impact of the integration on revenue and marketplace growth.