We identified e-commerce as one of the sectors that is expected to see M&A growth during challenging times. Not just businesses that have strong direct-to-consumer capabilities, but service providers that help power those sites. Private equity firms are investing in those segments too.

PSG Equity, a Boston-based growth equity firm, is looking for deals in this category. Earlier this week, the firm invested in Searchspring, which helps e-commerce merchants improve the shopper experience. Merchants use Searchspring to expand their product discovery through semantic site search capabilities and product merchandising. Searchspring also offers businesses a detailed look at shopper behavior and search performance.

With the continued growth of e-commerce sales, competition will get more fierce, and consumers are demanding better search and more personalization. Any business that can help sellers improve in those areas will be attractive to PE buyers.

“Search and merchandising tools are mission-critical to e-commerce merchants seeking to deliver a premium shopper experience and drive meaningful improvements in conversions,” PSG Principal Chris Andrews tells Mergers & Acquisitions. “PSG believes Searchspring is well-positioned to capitalize on tailwinds of the massive and rapidly growing e-commerce market with its robust suite of search, merchandising and personalization capabilities.”

PSG focuses on the software and tech-enabled services sectors. Founded in 2014, PSG has offices in Boston, Kansas City, London, Paris, Madrid and Tel-Aviv.

“PSG remains excited by secular trends in the space and has had experience in identifying and backing leading e-commerce businesses,” Andrews adds. “We look forward to increasing exposure to opportunities in both established and emerging areas within e-commerce.”

– Demitri Diakantonis