Canadian e-commerce company Shopify has reached an agreement to acquire Deliverr, Inc, a fulfilment technology provider, for $2.1 billion, to provide simplicity and scale to merchants, and to remove the complexity of fragmented supply chain management. With the addition of Deliverr’s team and resources, Shopify aims to gain visibility and control of movements along the supply chain.

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)

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