Home Tech Shopify acquires logistics company Deliverr for $ 2.1 billion in cash and...

Shopify acquires logistics company Deliverr for $ 2.1 billion in cash and shares

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E-commerce provider Deliverr, headquartered in San Francisco, will now be acquired by e-commerce giant Shopify for $ 2.1 billion. Shopify aims to create an end-to-end powerful logistics platform for millions of merchants that will give them more control over their inventory across all sales channels.

This is happening even at a time when Shopify shares fell sharply by more than 17% after markets opened today, as its results for the 1st quarter of 2022 did not meet analysts’ expectations. Revenue was $ 1.2 billion than Wall Street estimated at $ 1.24 billion.

This acquisition is the largest in Shopify’s 16-year history, headquartered in Ottawa. Shopify plans to integrate Deliverr network management software, a team of software engineers, operating and maintenance personnel, and its network of warehouses, carriers and partners for storage and delivery at the last mile into its e-commerce ecosystem.

It will also enhance Shop Promise, a new service that will provide customers with two-day and next-day delivery, as well as enhanced storage, freight, inventory preparation and return.

The deal, which is a mix of cash and stocks, will result in all 400 Deliverr employees joining Shopify to add to the current size of the Shopify execution team. About 80% of the purchase price (about $ 1.68 billion) will be paid in cash, and the remaining 20% ​​(about $ 420 million) will consist of Shopify Class A shares.

Bloomberg first reported hints of a deal in April. That same month, The Globe reported that the move was part of “Shopify’s ambitious strategic shift against Amazon.” And it could also help solidify Shopify as the largest e-commerce platform in the U.S. in terms of market share (32%), reports Oberlo.

According to the company, SFN, Deliverr and 6 River Systems (which they previously acquired for $ 450 million) will be merged into a wider logistics network.

The five-year Deliverr company, founded by former Symphony Commerce colleagues Harish Ebat and Michael Krakaris, has so far raised more than $ 490 million. Most recently, she raised a $ 240 million F-Series round held by Tiger Global and valued the company at $ 2 billion after receiving the money.

Deliverr provides product execution services to e-commerce vendors on market platforms using forecasting analysis and machine learning. Today, it delivers more than a million orders a month to thousands of retailers across the U.S. as it anticipates demand for products based on variables, including demographic and geographic, and then identifies goods close to demand and determines the best shipping method to ship. customers.

“Shopify is building the future of solutions for resellers, and our team has a track record in helping businesses of all sizes streamline their operations. We are excited to join Shopify in their mission to make commerce better for all while democratizing delivery and performance for independent entrepreneurs, ”Deliverr co-founder and CEO Harish Ebat said in a statement.

https://thetechportal.com/2022/05/06/shopify-deliverr-acquisition/

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