Shopify to buy fulfilment solutions company 6 River Systems for US$450M

Marco Green
September 11, 2019

Shopify, a leading multi-channel commerce platform, has announced an agreement to acquire 6 River Systems, a leading provider of collaborative warehouse fulfillment solutions.

Shopify announced in June that it would spend over US$1 billion in the next few years to establish a network of USA fulfilment centres, providing its merchants with an alternative to online giant Amazon in the warehousing and shipping sector.

With the acquisition of 6 River Systems, Shopify will add a team with decades of experience in fulfillment software and robotics, including experienced leaders from Kiva Systems (now Amazon Robotics).

Ottawa-based Shopify says the acquisition will give it access to fulfilment software and robotics, including mobile robots created to get orders shipped more efficiently from warehouses.

The company has an office in Waterloo.

-PiperJaffray (Michael J. Olson): "The deal is meant to provide a shot in the arm for the company's initiative to build out a fulfillment network".

"We see the company's leadership position in warehouse technology as a potential cornerstone of Shopify's nascent effort to improve the fulfillment capabilities for merchants in the face of Amazon one-day delivery", Baird Equity Research analyst Colin Sebastian said in a note.

"Shopify is taking on fulfillment the same way we've approached other commerce challenges, by bringing together the best technology to help everyone compete", said Tobi Lütke, CEO of Shopify.

The deal, poised to close in the fourth quarter, is expected to increase Shopify's expenses by about C$25 million ($19 million) in 2019, with no material impact on its revenue for the year.

An investor darling in Canada's ever-growing tech space, Shopify has climbed more than 1,400 per cent since it went public in 2015.

-With assistance from Kristine Owram.

Other reports by Click Lancashire

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