Lightspeed, a Montreal-based company that’s dual-listed on the New York Stock Exchange and the Toronto Stock Exchange, has entered into definitive agreements to acquire NuOrder, the digital wholesale e-commerce platform, and Ecwid, a U.S.-based global e-commerce platform.
NuOrder currently serves over 3,000 brands and saw more than 100,000 retailers make more than $11.5 billion in orders through its platform in the trailing 12 month period ended March 31. It generated revenues of over $20 million and grew at a rate exceeding 30 percent year-over-year during the same period.
Lightspeed will acquire NuOrder for about $425 million, satisfied by way of payment on closing of about $212.5 million in cash and the issuance of subordinate voting shares in the capital of Lightspeed valued at about $212.5 million. The deal is expected to close during the quarter ended Sept. 30 after applicable regulatory approvals.
Together, Lightspeed and NuOrder aim to create an industry-leading bridge between the merchant and supplier experience, simplifying product ordering for retailers and offering brands insight into how their products move. The acquisition will capitalize on the early success of the Lightspeed Supplier Network and accelerate the growth of Lightspeed’s financial services offerings, including Lighspeed Payments and Lightspeed Capital, while helping the company establish a global distribution network for leading brands, such as Canada Goose, Converse and Arc’teryx.
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As reported, in March, NuOrder, which is based in Los Angeles, disclosed a $45 million funding round led by Natalie Massenet and Nick Brown of Imaginary Ventures and Brighton Park Capital.
Ecwid, which allows customers to create standalone businesses in minutes, currently serves more than 130,000 paying customers in over 100 countries. In the period ended March 31, Ecwid generated revenues of over $20 million, growing at a rate of more than 50 percent year-over-year.
Lightspeed will acquire Ecwid for about $500 million, satisfied by way of payment on closing of about $175 million in cash and of Lightspeed shares valued at about $325 million. The deal, which is subject to customary closing conditions and post-closing working capital adjustment, is expected to close during the quarter ended Sept. 30, after applicate regulatory approvals.
Morgan Stanley & Co. LLC served as exclusive financial adviser to Ecwid and RBC served as adviser to Lightspeed on the Ecwid transaction
Once integrated, the combination of Lightspeed and Ecwid will help merchants reach shoppers wherever they are, whether on social media, or on digital marketplaces.
“By joining forces with Ecwid and NuOrder, Lightspeed becomes the common thread, uniting merchants, suppliers and consumers, a transformation we believe will enable innovative retailers to adapt to the new world of commerce,” said Dax Dasilva, founder and chief executive officer of Lightspeed. “As economics reopen and business creation accelerates, we hope to embolden entrepreneurs with the tools they need to simplify their operations and scale their ambitions.”
Rusain Fazlyez, CEO of Ecwid said, “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 eliminating the barriers merchants face when selling online, we will only more rapidly achieve our common vision of democratizing retail for independent businesses worldwide and enrich the communities they serve.”
In a joint statement, NuOrder co-founders and co-CEOs Olivia Skuza and Heath Wells said, “At NuOrder, we have been 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 exponentially. The power of connected commerce comes to life now. We are thrilled to join forces with Lightspeed to unlock transformative value for brands and retailers globally. This represents an inflection point in the history of retail.”
The closing of the two acquisitions is not contingent on each other.
Lightspeed, which was founded in 2005, serves retail, hospitality and golf businesses in over 100 countries. It has teams across North America, Europe and Asia Pacific.
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