Montreal-based leading provider of cloud-based, omnichannel commerce platforms Lightspeed POS Inc. has announced its entry into a definitive agreement to acquire ShopKeep Inc., a leading cloud commerce platform provider based in New York City.
This acquisition reinforces Lightspeed’s status as a category leader for complex retailers and restaurateurs seeking to modernize their operations as the global economy undergoes unprecedented digital acceleration.
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 worldwide, generating approximately US $33 billion in gross transaction volume.
“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 gross transaction volume, 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.”
Lightspeed has also released its financial results for the three-and six-month period that ended September 30, 2020.
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Second Quarter Financial Highlights:
(All comparisons are relative to the three-month period ended September 30, 2019 unless otherwise stated):
• Total revenue of $45.5 million, an increase of 62%
• Recurring software and payments revenue of $41.1 million, an increase of 62%
• Gross margin of 60%, with gross profit up by 42% versus the prior year quarter
• Net loss of ($19.5) million as compared to a net loss of ($10.1) million largely reflecting increases in non-cash expenses
• Adjusted EBITDA improved by $2.3 million to ($2.8) million
• At September 30, 2020, Lightspeed had $513.1 million in unrestricted cash and cash equivalents
Lightspeed delivered results for the quarter ahead of previously established guidance, characterized by a growing customer base, increased adoption of software modules, strong gross transaction volume growth, and increased payments penetration as small and medium-sized businesses continue to choose Lightspeed’s modern cloud-based omnichannel solutions.
To learn more visit https://www.lightspeedhq.com.
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