Canada's Shopify to acquire e-com fulfilment firm Deliverr for $2.1 bn

The addition of Deliverr will more than double the size of Shopify’s fulfilment team.

By integrating the end-to-end software and logistics platform into the Shopify ecosystem, Shopify will streamline logistics to provide simplicity and scale advantages for merchants, the company said in a media release.

Deliverr offers scalable logistics infrastructure for end-to-end inventory orchestration, including inventory receiving and inspection and cross-docking capabilities; inventory placement algorithms that route inventory based on predicted merchant demand; preparation, storage, and freight services; real-time fulfilment optimisation across online, brick-and-mortar, B2B and wholesale channels; and an asset-lite network of warehouse, carrier and last-mile partners offering elastic warehouse capacity to thousands of merchants.

Under the terms of the agreement, Shopify will acquire all of Deliverr’s outstanding securities in a transaction valued at approximately $2.1 billion, consisting of approximately 80 per cent in cash and 20 per cent in Shopify Class A Subordinate Voting Shares.

Additionally, the company has also reported its first quarter (Q1) results. Its total revenue in the first quarter grew 22 per cent to $1.2 billion, which represents a two-year compound annual growth rate of 60 per cent. The first quarter of 2021 marked the highest revenue growth in the company's history as a public company driven by stimulus and COVID-19 lockdowns.

Fibre2Fashion News Desk (KD)