The e-commerce company Shopify acquired the warehouse automation platform 6 River Systems for $450 million. The deal is subjected to be closed in terms of cash and stocks.
As part of the deal, the warehouse automation tech provider’s employees and founders will gain $69 million worth of Shopify Class A shares. 6 Rivers’ investors MenloVentures, Norwest Venture Partners, Eclipse Partners, among others were also in favor of the deal.
Powered by Artificial Intelligence, 6 River Systems uses cloud-based software and mobile robots for fulfillment services. The founders Dubois and Hamilton had been a part of Kiva Systems until it was acquired by Amazon and rebranded as Amazon Robotics.
CEO Dubois stated that the collaboration would aid thousands of businesses to improve their fulfillment operations with an easy-to-learn solution to double their productivity and improve their accuracy.
According to him, the partnership will change the game of fulfillment. The fulfillment solution provided has raised a total of $46 million to date spanning across 3 investment rounds.
The latest funding round came on January 2018 that witnessed $25 million with participation from 4 investors. The company is backed by Norwest Venture Partners, Menlo Ventures, among others.
Headquartered in Boston, the startup has set up operations in over 20 facilities across the US, Canada, and Europe with clients including Lockheed Martin, CSAT Solutions, ACT Fulfillment, XPO Logistics, and DHL.
Tobi Lutke, CEO of Shopify, stated that the acquisition would leverage technology and operational efficiencies to companies of all sizes across the globe.
According to him, the e-commerce platform is taking on fulfillment in the same way it has approached other commerce challenges by developing the best technology to help everyone compete.
The acquisition will give Shopify access to automated fulfillment services to improve the efficiency of the Shopify Fulfillment Network. 6 River Systems will completely merge with Shopify by the end of 2019.
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