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September 10, 2019 12:45 PM, EDT

Shopify Gets Boost After $450 Million Acquisition

Shopify Cole Burston/Bloomberg News

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Shopify Inc.’s initiative to spend $1 billion to set up a network of fulfillment centers in the U.S. has gained momentum after it announced the acquisition of 6 River Systems Inc., analysts said.

The Ottawa-based company announced the purchase of 6 River on Sept. 9, valuing the deal at $450 million, which consists of about 60% cash and 40% voting shares in Shopify’s stock, according to a statement from both companies. Waltham, Mass.-based 6 River uses robots and software to help fill retailers’ orders in warehouses.

In June, Shopify laid out a plan to expand its fulfillment business to help merchants using its e-commerce platform deliver products, similar to Amazon.com. 6 River was founded by executives who came from Kiva Systems — now Amazon Robotics — and it operates in more than 20 facilities across the U.S., Canada and Europe. It fulfills orders for companies including Lockheed Martin Corp. and Office Depot Inc.

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The deal, poised to close in the fourth quarter, is expected to increase Shopify’s expenses by about C$25 million ($19 million) in 2019, with no material impact on its revenue for the year. An investor darling in Canada’s ever-growing tech space, Shopify has climbed more than 1,400% since it went public in 2015. It’s among the nation’s best performing stocks this year with a 150% surge.