Shopify buys 6 River Systems for $450 million
today Sep 10, 2019
Canadian e-commerce service provider Shopify Inc. announced on Monday that it will acquire fulfilment solutions company 6 River Systems.
The $450 million cash-and-share deal follows Shopify’s plans to launch its Shopify Fulfillment Network, which will allow direct-to-consumer brands to make more timely deliveries, and provide lower shipping costs, to better compete against commerce giants like Amazon.
The acquisition will allow Shopify to have a team with decades of experience in fulfillment software and robotics, while the 6 River Systems software and collaborative mobile robots will increase Shopify’s speed and reliability of warehouse operations.
“Shopify is taking on fulfillment the same way we’ve approached other commerce challenges, by bringing together the best technology to help everyone compete,” said Tobi Lütke, CEO of Shopify, in a news statement.
“With 6 River Systems, we will bring technology and operational efficiencies to companies of all sizes around the world.”
“By joining Shopify, we're changing the game of fulfillment. Together, we will help thousands of businesses improve their fulfillment operations, with an easy-to-learn solution that can more than double productivity and improve accuracy,” added Jerome Dubois, co-CEO and co-founder of 6 River Systems.
Shopify said the transaction is expected to have no material impact to its revenue in 2019 and is expected to increase its 2019 expenses by approximately $25 million.
Last month, Shopify reported revenue that just about doubled in its second quarter, ended June 30, 2019, reaching $362 million.
Looking ahead, for the full year 2019, it currently expects, revenues in the range of $1.51 billion to $1.53 billion, and GAAP operating loss in the range of $145 million to $155 million.
Likewise, for its third quarter, revenues are expected to be in the range of $377 million to $382 million, while GAAP operating loss in the range of $44 million to $47 million.
It equally plans to roll out its dedicated network of fulfillment centers by the end of the year.
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