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Nov 6, 2020
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Lightspeed acquires ShopKeep for $440 million

Published
Nov 6, 2020

Cloud-based e-commerce technology company Lightspeed announced on Thursday it plans to acquire fellow Canadian cloud commerce platform provider ShopKeep Inc for $440 million in cash and shares. 
 

Lightspeed acquires ShopKeep for $440 million. - Lightspeedhq.com


The acquisition will grow Lightspeed's U.S. footprint by more than 20,000 customer locations and will allow the company to present retail and restaurant business owners in the United States with enhanced resources to pivot their operations, including Lightspeed's analytics, loyalty, e-commerce, and payments modules. 

The payment includes $145.2 million in cash and the issuance of 9,500,000 subordinate voting shares, while the deal is expected to close before the end of the company’s third-quarter ending December 31, 2020.

Following the closing of the acquisition, the Montreal-based company will serve over 100,000 customer locations worldwide, generating approximately $33 billion USD in gross transaction volume (GTV).

"ShopKeep's commitment to enabling independent businesses to dream big and rise above industry and economic challenges is deeply aligned with our own mission to power the future of commerce," said Dax Dasilva, founder and CEO of Lightspeed. 

"This acquisition will bring ShopKeep merchants, small and medium-sized businesses that make up the backbone of the U.S economy, into the Lightspeed family, providing them even more crucial product innovation and world-class support as they drive the reinvention of American commerce.”

Lightspeed's acquisition of ShopKeep follows several others by the company in recent years, including that of Montreal-based Chronogolf, Sydney-based Kounta and Berlin-based Gastrofix.

Lightspeed went public on the Toronto Stock Exchange last year, and most recently debuted on the New York Stock Exchange. 

Last month, it also launched a new subscription-based offering that allows retailers in North America to collect recurring revenue seamlessly through their point-of-sale system.

The deal with ShopKeep comes as Lightspeed reported second quarter revenue of $45.5 million, an increase of 62 percent, for the quarter ended September 30, 2020. The company reported net losses of $19.5 million, close to double its losses in its previous year. 

For the third quarter, the company said it expects to reach revenues of $44 to $47 million, while adjusted EBITDA loss is expected to be $8 to $10 million. 

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