MONTREAL, Nov. 6, 2020 /CNW Telbec/ -
Lightspeed POS Inc. (NYSE: LSPD) (TSX: LSPD), a leading provider of cloud-based, omnichannel commerce platforms, today announced it has entered into a definitive agreement to acquire
ShopKeep Inc. (ShopKeep), a leading cloud commerce platform provider based in New York City. This acquisition reinforces Lightspeed's status as a clear category leader for complex retailers and restaurateurs seeking to modernize their operations as the global economy undergoes unprecedented digital acceleration.
COVID-19 is forcing independent businesses to urgently replace legacy point-of-sale systems in order to remain operational and safely adapt to evolving consumer behaviors. The scale achieved by the combination of Lightspeed and ShopKeep presents retail and restaurant business owners in the United States with enhanced resources to pivot their operations. Lightspeed's analytics, loyalty, eCommerce, and payments modules, in addition to its multi-location solution, will offer ShopKeep's customer base the opportunity to enhance their capabilities.
The acquisition immediately expands Lightspeed's U.S. market share, allowing for increased investment in sales, marketing, and research and development to capitalize on the increasing demand for modern, cloud-based, omnichannel commerce solutions. Following the closing of the acquisition, Lightspeed will serve over 100,000 customer locations
1 worldwide, generating approximately $33 billion USD in gross transaction volume
2 (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."
The acquisition will generate strong expected synergies resulting from increased GTV, the ability to leverage integrated go-to-market resources and a combined payments opportunity. Once closed, Lightspeed's acquisition of ShopKeep will follow the successful integration of multiple premier platforms that experienced accelerated growth following their acquisitions by Lightspeed, including that of Montréal-based Chronogolf, Sydney-based Kounta and Berlin-based Gastrofix.
"We believe uniting with Lightspeed highlights and amplifies our shared vision to deliver industry leading commerce enablement for small and medium-sized businesses," said Michael DeSimone, CEO of ShopKeep. "Our partnership sets the stage to help business owners navigate through challenging times, keep pace with rapid change and adapt quickly to meet the rising demands of today's customers."
Details of transaction:
ShopKeep generated revenue of approximately $50 million
3 and GTV of approximately $7 billion in the trailing twelve month period ending September 2020. Lightspeed will acquire ShopKeep for a total estimated consideration of approximately $440 million, satisfied by way of payment on closing of $145.2 million in cash and the issuance of 9,500,000 subordinate voting shares in the capital of Lightspeed, subject to the adjustment mechanisms outlined in footnote 4 below.
4 The deal, which is subject to customary closing conditions and post-closing working capital adjustment, is expected to close before the end of the company's quarter ending December 31, 2020.
Additional details regarding this transaction will be communicated during Lightspeed's Fiscal Second Quarter 2021 Financial Results Conference Call, which is scheduled for Thursday, November 5, 2020.
RBC Capital Markets acted as advisor to Lightspeed on the transaction.
About ShopKeep
ShopKeep's platform is used by more than 20,000 retailers and restaurant customer locations nationwide. ShopKeep enables business owners to start and grow their businesses by accepting any type of payment and providing essential features such as automatic inventory tracking, employee management and real time sales reporting.
About Lightspeed
Lightspeed (NYSE and TSX: LSPD) powers complex small and medium-sized businesses with its cloud-based, omnichannel commerce platforms in over 100 countries. With smart, scalable and dependable point of sale systems, Lightspeed provides all-in-one solutions that drive innovation and digital transformation within the retail, hospitality and golf industries. Its product suite enables SMBs to sell across channels, manage operations, engage with consumers, accept payments and ultimately grow their business.
Headquartered in Montreal, Canada, Lightspeed is trusted by favorite local businesses worldwide, where communities go to shop and dine. Lightspeed has staff located in Canada, USA, Europe, and Australia
Lightspeed
lightspeed@marcommit.nl
+31 (0)35 5822730
Lightspeed Nederland
www.lightspeedhq.nl
Meer informatie:
Marcommit
Mariëlle van Schaik
035 – 5822730
Marielle.vanschaik@marcommit.nl