Shopify Announces Acquisition Plans For 6 River Systems
According to Jerome Dubois, The Co- CEO and Co- Founder of 6 River Systems, “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.
8 River Systems is a known global leading organization that provides solutions that are closely related with the collaborative warehouse fulfillment. Founded in 2015 by Jerome Dubois, Rylan Hamilton and Chris Cacioppo who were past executives at amazon robotics, 6 River Systems is one that can fully boast of a number of years of experience in the supply of services that are major on fulfillment software and robotics.
This acquisition deal is one that will help in increasing the growth level for Shopify while also not hindering the sales of their solutions to other warehouses by 6 River Systems. There will be an addition of cloud- based software and collaborative mobile robots called ‘Chuck’ to the already released Shopify platform known as the Shopify Fulfillment Network, thereby reducing the time taken to deliver services, reducing costs and increasing customers experience.
Tobi Lutke, The CEO of Shopify says, “Shopify is taking on fulfillment the same way we’ve approached other commerce challenges, by bringing together the best technology to help everyone compete. With 6 River Systems, we will bring technology and operational efficiencies to companies of all sized around the world.
Available details on this agreement include;
- An acquisition of all of 6 River Systems’ outstanding securities at approximately usd$450 million (60% cash and 40% voting shares).
- No material impact on Shopify’s 2019 revenue.
- Increase in Shopify’s 2019 expenses by approximately $25 million.
- Annual billings generation of about $30 million in 2020 by 6 River Systems.
Shopify is a leading platform for the provision of multi- channel commerce. The platform serves as a means of providing clients with a single view of their business and also a powerful back-office. With the Shopify Fulfillment Platform, clients are assured of adequate reliability and scaling in their businesses.
