Shopify Would Buy Warehouse Technology for About $450 Million
On Monday Shopify Inc said it would buy warehouse technology provider 6 River Systems Inc for about $450 million because it appears to accelerate the growth of its fulfillment network.
Shopify unveiled plans in June to spend $1 billion to run a warehousing community in the United States to tackle the likes of Amazon.com Inc and eBay Inc.
The deal underscores how e-commerce firms and traders increasingly view robotics as key to keeping up with consumers’ expectations for dependable and quick supply. The information follows Amazon’s acquisition of Canvas Technology earlier this year, which has built autonomous carts that transfer goods around warehouses.
Boston space-based 6 River sells a self-driving cart system called “Chuck” that guides workers by way of warehouse aisles to select buyer orders in the most systematic approach possible.
“When the picker is completed, they only press a button, and off the robot goes,” mentioned Matt Murphy, a member of 6 River Systems’ board and partner at Menlo Ventures, which invested in the firm. “It minimizes lots of human motion.”
Co-founders include veterans from Kiva Programs, which Amazon acquired in 2012 to help retailer and move stock more effectively. Whereas Amazon took the Kiva robots in-home, Shopify mentioned 6 River Systems would hold selling technology to warehouses.
The deal, which consists of about 60% in cash and 40% in Shopify Class A subordinate voting shares, can have no materials impact to Shopify’s revenue in 2019, the Canadian e-commerce firm said.
Shopify expects the deal to close in the fourth quarter this year.