E-commerce technology company Shopify is buying warehouse automation company 6 River Systems for $450 million, the company announced on Monday.
Shopify announced in June that it would spend over US$1 billion in the next few years to establish a network of U.S. fulfilment centres, that will ensure timely deliveries and lower shipping costs for merchants and their customers. The company added that this acquisition is a critical step to accelerate its growth.
“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 Shopify CEO Tobi Lütke. "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,” Matt Murphy, a managing partner at 6 River Systems investor Menlo Ventures and a member of the startup’s board, wrote in a blog post on the acquisition. “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.”
The transaction is expected to increase Shopify’s 2019 expenses by approximately $25 million.
Ottawa-based Shopify, which says it has 820,000 merchants as customers in approximately 175 countries, is a technology platform that helps retailers sell merchandise online.