5 May 2022
Shopify reaches agreement to acquire PE-backed Deliverr for $2.1 billion
On July 8, 2022, Shopify Inc. has finalized the purchase of logistics firm Deliverr, Inc., significantly boosting its Shopify Fulfillment Network (SFN) and adding over 400 Deliverr employees. Aaron Brown, head of Shopify’s logistics, highlighted the enhanced ability to manage inventory seamlessly from importation to customer delivery.
This acquisition aims to streamline logistics across millions of businesses, improving inventory management and distribution. SFN will integrate Deliverr's software to provide multichannel inventory oversight, ensuring merchants can efficiently handle their products on various marketplaces, including Amazon, eBay, and social media. SFN's advanced positioning of inventory is designed to meet consumer demand effectively.
Moreover, Shopify introduced Shop Promise, a component of SFN offering assured two-day and next-day deliveries throughout the U.S. This feature relies on a broad network of partners and carriers, maintaining merchant control over brand and customer information.
The deal, valued at roughly $2.1 billion, involves $1.7 billion in cash and $0.4 billion in Shopify Class A Subordinate Voting Shares. Notably, Deliverr’s leadership chose to take a large part of their shareholder return in Shopify shares with conditional vesting.
