E-commerce technology company Shopify has announced it has reached an agreement to acquire fulfilment provider Deliverr in a 2.1 billion dollar deal.
The acquisition will see Deliverr’s services provided to Shopify’s merchants, with the goal of removing “the complexity of fragmented supply chain management”, Shopify said in a release. It added that by streamlining logistics, it hopes to scale advantages for merchants and further control movements across its supply chain.
The transaction consisted of around 80 percent cash and 20 percent Shopify Class A Subordinate Voting Shares, with the deal to close following regulatory review.
“Our goal is to not only level the playing field for independent businesses, but tilt it in their favour – turning their size and agility into a superpower,” said Tobi Lütke, Shopify’s CEO. “Together with Deliverr, Shopify Fulfilment Network will give millions of growing businesses access to simple, powerful logistics platform that will allow them to make their customers happy over and over again.”
It comes as Shopify reported that its total revenue in the first quarter grew 22 percent, to 1.2 billion dollars, missing analysts’ 1.25 billion dollar estimates. However, the company said the first quarter of 2021 marked the highest revenue growth in its history as a public company, crediting covid-19 lockdowns and stimulus as the reasoning behind the growth.