POS solution provider Lightspeed has announced that it is set to acquire cloud commerce firm ShopKeep in a deal worth approximately $440 million. The deal, which will consist of $145.2 million in cash alongside the issuance of 9.5 million subordinate voting shares, is expected to close before the end of the year.
The acquisition boosts Lightspeed’s offering for businesses looking to modernize their payment processes. In particular, the addition of ShopKeep’s capabilities should reinforce Lightspeed’s ability to meet the rapidly increasing demand for digital solutions brought about by the COVID-19 pandemic.
As the virus has spread, many retail and hospitality businesses have been forced to embrace digital platforms, with cash payments carrying a greater risk of being a vector for the disease. What’s more, many businesses have had to temporarily close their physical outlets, increasing their reliance on e-commerce.
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One big family
As a result of the ShopKeep acquisition, Lightspeed sees its market share increase markedly, while the firm is also expected to benefit from a number of synergies. In addition, it serves to demonstrate the further consolidation of the POS market, following Lightspeed’s earlier acquisitions of Chronogolf, Kounta and Gastrofix.
"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," Dax Dasilva, Founder and CEO of Lightspeed, commented.
"This acquisition will bring ShopKeep merchants, small and medium-sized businesses that make up the backbone of the US economy, into the Lightspeed family, providing them even more crucial product innovation and world-class support as they drive the reinvention of American commerce."
Although COVID-19 has accelerated a transition towards e-commerce, Lightspeed and its competitors will still undoubtedly be looking forward to seeing the back of the disease. The economic damage to both the retail and hospitality industries is likely to hit demand for digital payment services in the long-run.
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Barclay has been writing about technology for a decade, starting out as a freelancer with ITProPortal covering everything from London’s start-up scene to comparisons of the best cloud storage services. After that, he spent some time as the managing editor of an online outlet focusing on cloud computing, furthering his interest in virtualization, Big Data, and the Internet of Things.