Published On: Thu, Sep 12th, 2019

Shopify to acquire US warehouse automation company 6 River Systems

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Shopify acquisition of 6 River Systems : Canadian e-commerce company Shopify has agreed to acquire outstanding securities of US warehouse automation company 6 River Systems in a transaction valued at approximately US$450 million.

The acquisition of 6 River Systems will add cloud-based software and collaborative mobile robots Chuck to the recently introduced Shopify Fulfillment Network. By adding the capabilities of the US warehouse robotics company, Shopify is hoping to ensure timely deliveries, lower shipping costs, and improved customer experience for merchants and their customers.

Under the agreement, the Canadian e-commerce company will also accelerate its growth while 6 River Systems will also continue to build and sell its warehouse solutions.

Comments on Shopify acquisition of 6 River Systems

Tobi Lütke – CEO of Shopify, commenting on Shopify acquisition of 6 River Systems, said: “Shopify is taking on fulfillment the same way we’ve approached other commerce challenges, by bringing together the best technology to help everyone compete.

“With 6 River Systems, we will bring technology and operational efficiencies to companies of all sizes around the world.”

Shopify acquisition of 6 River Systems, a warehouse automation company

Shopify acquisition of 6 River Systems, a warehouse automation company. Image courtesy of krishna arts at FreeDigitalPhotos.net.

The transaction value of Shopify acquisition of 6 River Systems consists of approximately 60% in cash and 40% in Shopify Class A Subordinate Voting Shares as well as Shopify Class A shares and options valued at approximately US$69 million that will be issued to the founders and employees, of the US warehouse automation company, subject to certain conditions.

Commenting on Shopify acquisition of 6 River Systems, Jerome Dubois – co-CEO and co-founder of 6 River Systems said: “By joining Shopify, we’re changing the game of fulfillment.

“Together, we will help thousands of businesses improve their fulfillment operations, with an easy-to-learn solution that can more than double productivity and improve accuracy.”

Shopify acquisition of 6 River Systems is anticipated to be completed in the Q4 of 2019, subject to various closing conditions.

Currently, the Canadian e-commerce company powers over 800,000 businesses in around 175 countries and its clients include Unilever, Kylie Cosmetics, Allbirds, MVMT, and other.

On the other hand, the US warehouse robotics company, which was founded in 2015 by Jerome Dubois, Rylan Hamilton and Chris Cacioppo, operates in over 20 facilities in the US, Canada and Europe.

For more retail acquisition news like Shopify acquisition of 6 River Systems, a US warehouse automation company, keep following Business News Today.

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