Lightspeed has picked two more companies in an acquisition spree for the Canadian point-of-sale software provider. The company today announced that it will acquire e-commerce platform Ecwid for $500 million; and NuOrder, a B2B ordering platform that serves wholesalers, brands and retailers for $425 million.
Together, the two deals underscore the long-awaited consolidation trend revolving around the fragmented e-commerce industry, at a time when digital transactions are playing a more important role in the COVID-hit global economy, and smaller players are better off. Looking for ways. To compete against giants like Amazon and Stripe with a mix of tools and services addressing the diverse needs of merchants, brands, suppliers and everything in between.
Dax DaSilva, Founder and CEO of Lightspeed, said, “By joining Ecwid and NuOrder, Lightspeed becomes the common thread uniting merchants, suppliers and consumers, a transformation that we believe will drive innovative retailers to drive commerce.” will enable us to adapt to the new world.” a statement. “As economies reopen and business creation accelerates, we hope to incentivize entrepreneurs with the tools they need to streamline their operations and scale up their ambitions.”
Lightspeed will pay $175 million in cash and $325 million in shares for Ecwid; And it will pay for NuOrder $212.5 million in cash and $212.5 million in shares, the company said. Both deals are expected to close at the end of September, pending regulatory and other approvals.
Lightspeed is publicly traded and has a market cap of approximately $9.4 billion. It’s been on an acquisition march over the past several months to build a complete, end-to-end, one-stop-shop for big picture customers beyond the basics of point-of-sale software, which helped The company makes its name. This also includes the acquisition of Upserve in December in a deal worth $430 million to deepen its presence in the restaurant industry.
Ecwid itself has been around for several years, initially making a name for itself as a leading partner of Facebook in helping small businesses build commerce experiences on the social media platform, and eventually merchants using services like Square and Wix. As well as other third-party platforms such as Instagram and Google – sometimes competing with, but potentially integrating with other e-commerce backends such as Shopify.
The company — originally founded in Russia — was largely under the venture radar until last year, when it raised $42 million from Morgan Stanley and Peakspan Capital to double the growth.
And that growth has been good. It currently has 130,000 paying customers in 100+ countries and Lightspeed said it had revenue of more than $20 million, a 50% year-over-year increase in the year ending March. The deal, which is subject to customary closing conditions and post-closure working capital adjustments, is expected to close during the quarter ended September 30, 2021, after receipt of applicable regulatory approvals.
“The distinction between online and brick-and-mortar retail has disappeared. Lightspeed and Ecwid, two best-in-class platforms, will unite to truly empower businesses. By removing the barriers that merchants face when selling online, we will more quickly achieve our common vision for independent businesses around the world to democratize retail and enrich the communities they serve.” Ecwid CEO Ruslan Fazliev said in a statement.
NuOrder, meanwhile, will help LightSpeed deepen its role in supplier relationships and transactions – one where LightSpeed was already building a business through its Lightspeed supplier network. is an essential cornerstone. NuOrder has 3,000 brand and 100,000 retailer customers — some of them including Canada Goose, Converse and Arc’teryx — and Lightspeed said it placed about $11.5 billion in orders through its platform in the year ended March .
Like Ecwid, NuOrder posted revenue of $20 million in that period; Its growth rate was 30% year-on-year.
“At Nuorder, we are on a journey to revolutionize retail by building a global network for brands and retailers. The coming together of Lightspeed and NuORDER accelerates that vision. The power of connected commerce now comes to life,” Olivia Skuja and Heather Wells, co-founders and co-CEOs of Nuorder, said in a statement. “We are thrilled to partner with Lightspeed to unlock transformative value for brands and retailers globally. It represents a turning point in the history of retail.”