World News – CA – Lightspeed to acquire ShopKeep for $ 440 million

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Montreal-based Lightspeed announced Thursday that it is preparing to acquire ShopKeep, a leading New York-based cloud commerce platform provider

The deal, said to be the largest to date for Lightspeed, comes as the company reports second quarter results for the period ending September 30, 2020

Lightspeed will acquire ShopKeep for approximately $ 440 million, including $ 145 million in cash and the issuance of 95 million subordinate voting shares in Lightspeed The deal is expected to close before the end of the third quarter of the company ending December 31, 2020

Lightspeed touted its latest acquisition as a reinforcement of its « clear category leader status for complex retailers and restaurateurs looking to modernize their operations » Once completed, the deal would increase the Montreal-based company’s market share in the United States, which Lightspeed says will allow it to increase its investment in sales, marketing and research and development in the region

Speaking to BetaKit earlier this year, Lightspeed Founder and CEO Dax Dasilva highlighted the company’s goal of increasing brand awareness in the United States. The decision to apply for a double listing on the New York Stock Exchange (NYSE) earlier this year, the CEO said, was greatly encouraged by investors at Lightspeed who also hoped to make the company more accessible to U.S. investors.

Thanks to the listing, Lightspeed grossed $ 397 USD 7 million in its IPO

Founded in 2008, ShopKeep offers a cloud-based point of sale (POS) system with over 20,000 customers across retail, cafes, restaurants and bars across the United States and the United States. Canada Upon closing of acquisition, Lightspeed says it will serve over 100,000 customers worldwide

As it has done with previous acquisitions, Lightspeed is on the cusp of integrating ShopKeep with its own platform and expects the deal to also increase gross transaction volume (GTV) from its customers, projecting around 33 billion USD worldwide According to Lightspeed, ShopKeep generated roughly $ 50 million in revenue and around $ 7 billion GTV in the twelve month period ending September 2020

In its second quarter results, Lightspeed reported total revenue of $ 455 million, a year-over-year (YoY) increase of 62% The Recurring Software and Payments Revenge reported $ 41 million of that amount, also a 62% year-on-year increase The company reported net losses of $ 19.5 million, nearly double its losses last year ($ 10 million) Lightspeed attributed the increase to « Non-monetary expenditure »

The Montreal-based company also reported adjusted earnings before interest, taxes, depreciation and amortization at a loss of $ 2.8 million, an improvement of $ 2.3 million from the previous year

Lightspeed added that despite strong second quarter 2020 results, it remains cautious in the near term given the growing number of government shutdowns related to second wave COVID-19 in North America and Europe – key regions for the company

Meagan is the associate editor of BetaKit A tech writer very proud to feature the Canadian tech scene Experience in almost every type of journalism from sports to politics Podcast and Harry Potter nerd, photographer and cat freak

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World News – CA – Lightspeed to Acquire ShopKeep for US $ 440 Million, Reports Strong Second Quarter Results



SOURCE: https://www.w24news.com

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