Multi-channel commerce platform Shopify Inc. has reached an agreement to acquire 6 River Systems, Inc., a leading provider of collaborative warehouse fulfilment solutions as part of its efforts to grow the Shopify Fulfillment Network, a fulfillment network that will ensure timely deliveries, lower shipping costs, and provide superb customer experience for merchants and their customers.
With the acquisition, Shopify will add a team with decades of experience in fulfillment software and robotics, including experienced leaders from Kiva Systems (now Amazon Robotics). According to the company, adding 6 River Systems’ cloud-based software and collaborative mobile robots called ‘Chuck’ to the Shopify Fulfillment Network will increase the speed and reliability of warehouse operations, by empowering on-site associates with daily tasks, including inventory replenishment, picking, sorting and packing.
“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. “With 6 River Systems, we will bring technology and operational efficiencies to companies of all sizes around the world.”
“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,” said Jerome Dubois, co-CEO and co-founder of 6 River Systems.
Under the terms of the agreement, which has been approved by 6 River Systems’ stockholders, Shopify will acquire all of 6 River Systems’ outstanding securities in a transaction valued at approximately US$450m, consisting of approximately 60% in cash and 40% in Shopify Class A Subordinate Voting Shares. Subject to various closing conditions, the acquisition is expected to close in the fourth quarter of 2019.
OPINION: Ash Sharma, research director for Interact Analysis’ commercial drone and robotics research, examines whether the price is right for Shopify’s acquisition of 6 River Systems here.