Company News

Shopify to buy warehouse technology provider for $450 mln

Sept 9 (Reuters) - Shopify Inc said on Monday it would buy warehouse technology provider 6 River Systems Inc for about $450 million, as it looks to accelerate growth of its fulfillment network.

Shopify unveiled plans in June to spend over a billion dollars to build and operate its fulfillment network in the United States to take on the likes of Inc and eBay.

“By joining Shopify, we’re changing the game of fulfillment,” 6 River’s co-chief executive officer, Jerome Dubois, was quoted as saying in a statement from Shopify.

The deal, which consists of about 60% in cash and 40% in Shopify Class A subordinate voting shares, will have no material impact to Shopify’s revenue in 2019, the Canadian e-commerce company said.

Shopify expects the deal to close in the fourth quarter this year. (Reporting by Debroop Roy in Bengaluru; Editing by Maju Samuel)