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Shopify buying warehouse technology provider 6 River Systems in $450M deal

Shopify Inc., which provides a multi-channel commerce platform, agreed to buy 6 River Systems Inc. in a cash-and-stock transaction valued at about $450 million.

The transaction consists of approximately 60% in cash and 40% in Shopify class A subordinate voting shares, the company disclosed in an SEC filing. Included in this amount are Shopify class A shares and options valued at about $69 million that will be issued to 6 River Systems' founders and employees that will vest subject to certain conditions and will be treated as stock-based compensation.

Shopify said the acquisition will not have a material impact on its revenue in 2019. The company expects the deal to increase its 2019 expenses by about $25 million, including $10 million in operating expenses, $8 million in amortization of intangibles resulting from purchase accounting and $7 million in stock-based compensation. 6 River Systems, which provides collaborative warehouse fulfillment services, is expected to generate annual billings of about $30 million in 2020.

Shopify expects the transaction, which has been approved by stockholders of 6 River Systems, to close in the fourth quarter.