Montreal-based commerce platform Lightspeed announced Monday that it has acquired two global leaders in digital commerce for about USD $925 million in total. The acquisitions will provide Lightspeed customers new further digital capabilities, enhanced supply chain management, and enhanced online customer experiences.
Lightspeed will acquire US-based eCommerce platform Ecwid which allows customers to create standalone businesses in a short time. Once integrated, the combination of Lightspeed and Ecwid will allow for selling flexibility and omnichannel experiences. Lightspeed acquired Ecwid for about USD $500 million including payment on closing of approximately USD $175 million in cash and issuance of subordinate voting shares in the capital of Lightspeed valued at approximately USD $325 million. The deal is expected to close during the quarter ended September 30, 2021.
Lightspeed also announced a definitive agreement to acquire digital platform NuORDER which connects businesses and suppliers. The partnership’s aim is to create an industry-leading bridge between the merchant and supplier experience by simplifying product ordering for retailers and offering brands insight into how their products move. Lightspeed will acquire NuORDER for about USD $425 million by way of payment on closing of USD $212.5 million in cash and the issuance of subordinate voting shares in the capital of Lightspeed valued at approximately USD $212.5 million. The deal is expected to close during the quarter ended September 30, 2021 as well.
The acquisition of NuORDER capitalizes on the Lightspeed Supplier Network to accelerate the growth of Lightspeed’s financial services offerings including Lightspeed Payments and Lightspeed Capital while establishing the company as a distribution network for leading brands such as Canada Goose, Converse and Arc’teryx.
“By joining forces with Ecwid and NuORDER, Lightspeed becomes the common thread uniting merchants, suppliers and consumers, a transformation we believe will enable innovative retailers to adapt to the new world of commerce,” said Dax Dasilva, Founder and CEO of Lightspeed. “As economies reopen and business creation accelerates, we hope to embolden entrepreneurs with the tools they need to simplify their operations and scale their ambitions.”
Ecwid currently serves over 130,000 customers in over 100 countries globally and had revenue of over USD $20 million last year with 50% growth year-over-year. NuORDER serves over 3,000 brands with about 100,000 partner retailers seeing more than USD $11.5 billion in orders through its platform over the course of the year, generating over USD $20 million in annual revenue with a year-over-year growth rate exceeding 30%.
Lightspeed was founded in Montréal in 2005 and is dual-listed on the New York Stock Exchange and Toronto Stock Exchange (NYSE: LSPD) (TSX: LSPD). The rapidly growing company has teams across North America, Europe and Asia Pacific and serves retail, hospitality and golf businesses in over 100 countries.
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