(OTTAWA) Shopify announced Thursday that it has reached an agreement that will see it acquire U.S. logistics company Deliverr in a deal valued at around $2.1 billion.
Posted at 10:45 a.m.
Under the agreement, Shopify will match approximately 80% of the purchase price in cash and 20% in Shopify stock.
The Ottawa-based company said the acquisition would allow it to streamline its logistics operations and provide greater simplicity and benefits of scale to its merchant customers.
“Our goal is not just to level the playing field for independent businesses, but to tip the market in their favor — making their size and agility a superpower,” Shopify CEO Tobi said. Lutke, in a statement.
“Together with Deliverr, Shopify’s Fulfillment Network will enable millions of growing businesses to have access to a powerful logistics platform that will keep their customers happy every time. »
Shopify believes that the agreement will strengthen its ability to offer merchants simplified inventory management and fast delivery service.
Deliverr delivers over one million orders per month across the United States.
The transaction is expected to close following regulatory review.
Separately, Shopify on Thursday reported a loss of US$1.5 billion, or US$11.70 per share, for its first quarter, as well as revenue of US$1.2 billion.
That result compared with a profit of US$1.3 billion, or US$9.94 per share, from revenue totaling US$988.6 million in the same period last year.
On an adjusted basis, Shopify earned earnings of US$20 cents per share in the most recent quarter, compared to adjusted earnings of US$2.01 per share in the first quarter of 2021.
Analysts on average had expected adjusted earnings of 68 cents US for the quarter and revenue of US$1.25 billion, according to forecasts compiled by financial data firm Refinitiv.
Company in this dispatch: (TSX: SHOP)