- Shopify Inc. (TSX:SHOP) has announced it has completed its acquisition of Deliverr Inc.
- The acquisition will enable the companies to give millions of independent businesses an end-to-end logistics platform to unlock fulfillment needs
- Under the terms of the agreement, Shopify will acquire all of Deliverr’s outstanding securities in a transaction valued at US$2.1 billion with $1.7 billion of that in net cash and $400 million in Shopify Class A Subordinate Voting Shares
- The partnership will provide merchants with a one-stop-shop for logistics needs, including initial receipt of inventory and smart distribution
- Shares of Shopify are up 0.55 per cent to C$46.08
Shopify Inc. (SHOP) has acquired Deliverr Inc, an eCommerce fulfillment service.
As part of the agreement, Shopify will acquire all of Deliverr’s outstanding securities in a transaction worth US$2.1 billion, with $1.7 billion of that in next cash and the remaining $400 million in Shopify Class A Subordinate Voting Shares.
The acquisition of Deliverr will allow Shopify Fulfillment Network (SNF) the ability to give independent businesses on and off Shopify an end-to-end logisitcs platform to unlock fast and easy fulfillemnt.
Merchant benefits will include:
- Multichannel inventory management. Merchants will have a single place to view and ship their inventory for different sales channels, including Amazon, eBay, Etsy, Walmart, and platforms like Google, Facebook, Instagram, and TikTok.
- Greater alignment between inventory supply and demand. Merchants will have their inventory automatically positioned near demand and fulfill orders from the closest possible warehouse utilizing proprietary software that predicts where customer orders are likely to come from.
- More flexible, independent logistics services. Merchants, whether or not they use SFN for fulfillment, can mix and match key services such as storage, freight, inventory preparation and returns so they can choose what’s right for them as they scale.
- Shop Promise. A new service that offers consumers reliable two-day and next-day delivery options across the U.S., Shop Promise utilizes an expanded network of partners and carriers, and guarantees merchants full ownership of their brand, business intelligence, and customer data.
“SFN will allow all merchants to better align the supply of their inventory with buyer demand as we remove complexity for merchants in one of the most challenging areas they face today: logistics. And soon, we will roll out another powerful feature of SFN called Shop Promise, which will offer reliable two- and next-day delivery options across the U.S.,” Aaron Brown, CEO of Shopify’s logisitcs group, said in a press release.
The acquisition of Deliverr is Shopify’s largest in its history.
Together, SFN and Deliver will enable Shop Promise, a service that will offer customers two-day and next-day delivery options from a wide range of merchants.
The technology from Deliverr will strengthen SFN’s capabilities of managing merchant inventory from the warehouse to the customer, and will also remove supply chain complexities for merchants of all sizes.
Shares of Shopify are up 0.55 per cent to C$46.08.
