Shopify to buy 6 River Systems for 450 million dollars
By Prachi Singh
10 Sep 2019
Multi-channel ecommerce platform Shopify Inc. has reached an agreement to acquire 6 River Systems, Inc., provider of collaborative warehouse fulfilment solutions. The company announced through a statement that under the terms of the agreement, Shopify will acquire all of 6 River Systems’ outstanding securities for approximately 450 million dollars, consisting of around 60 percent in cash and 40 percent in Shopify Class A Subordinate Voting Shares. The company expects 6 River Systems to generate annual billings of around 30 million dollars in 2020, with associated revenue recognised over the multi-year lifetime of each contract.
“Shopify is taking on fulfilment 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, adding, “With 6 River Systems, we will bring technology and operational efficiencies to companies of all sizes around the world.”
In June, Shopify introduced the Shopify Fulfillment Network to ensure timely deliveries, lower shipping costs, and to provide better customer experience for merchants and their customers. The company added that this acquisition is a critical step to accelerate its growth, while 6 River Systems will also continue to build and sell their solution for warehouses. With the acquisition of 6 River Systems, Shopify will add a team with decades of experience in fulfilment software and robotics, including experienced leaders from Kiva Systems (now Amazon Robotics).
The company further said that adding 6 River Systems’ cloud-based software and collaborative mobile robots called “Chuck” to the Shopify Fulfillment Network will increase the speed and reliability of warehouse operations, by empowering on-site associates with daily tasks, including inventory replenishment, picking, sorting and packing.