CustomMade launched in 2009 when Boston-area entrepreneurs Seth Rosen and Michael Salguero bought the URL and existing business, for $150,000. This week, the Atlas Venture-backed startup is avoiding layoffs in a deal that allows Wayfair ($W) to hire away CustomMade’s staff, wholesale.
“I can confirm that CustomMade entered into a definitive agreement with Wayfair (W) to acquire the majority of its employees,” Rosen, CustomMade’s CEO, confirmed in an email.
In the deal, Cambridge, Mass.-based CustomMade Ventures Corp. retains ownership of the business and its intellectual property. “There will be no interruption in service to our 22,000 custom makers or our 10M customers,” Rosen wrote.
Update: Mike Salguero is leaving the company with the move, Rosen told BostInno. VP Engineering Sasha Shusteff will be taking a larger role.
We’d reported earlier Thursday that CustomMade was in acquisition talks with Wayfair, which IPO’d last fall and has a market cap of $2.4 billion and is trading today about a dollar above its IPO price of $29.
CustomMade specializes in goods, some artisanal, some not, that are custom-made to order. The company raised nearly $26 million since its acquisition by Rosen and Salguero in 2009. Its last round was an $18 million Series B closed in June, 2013, led by Atlas Venture.
Fred Destin led the round for Atlas; since Destin’s departure last April from Atlas (now known temporarily as FKA), Jon Karlen has taken over the board seat. Karlen declined to comment. Other investors include Google Ventures, NextView Ventures, First Round Capital, LaunchCapital and Schooner Capital.
Asked what’s next for CustomMade.com, Rosen wouldn’t say. “It’s a bummer to say goodbye to so many talented people, and that’s been most of my focus,” he wrote. “But suffice it to say I’m very excited about what’s to come.”
Editor’s note: An earlier version of this story had Rosen as VP UX at CustomMade. He’s CEO.