E-commerce software producer Shopify agreed yesterday to acquire US-based warehousing and fulfilment technology provider 6 River Systems in a $450m deal that will allow domestic robot producer iRobot to exit.
The transaction will be made up of approximately $270m in cash, with the rest to consist of shares in publicly-traded Shopify. 6 River has raised $46m in funding.
Founded in 2015, 6 River has created a fulfilment system that combines robotics technology and cloud software to help warehouse workers fulfil orders and replenish warehouse stock levels more quickly and efficiently.
Although the company’s technology will support a fulfilment network launched by Shopify in June this year, 6 River will also continue to sell its systems to warehouses post-acquisition.
Shopify CEO Tobi Lütke said: “Shopify is taking on fulfilment the same way we have approached other commerce challenges, by bringing together the best technology to help everyone compete. With 6 River Systems, we will bring technology and operational efficiencies to companies of all sizes around the world.”
Venture capital firm Eclipse led a $6m seed round for 6 River in 2016 that also featured iRobot, before the company added $15m in series A funding from VC firm Norwest Venture Partners (NVP) and its existing investors the following year.
The company subsequently pulled in $25m in an April 2018 series B round led by VC firm Menlo Ventures that included iRobot, NVP and Eclipse.
Photo courtesy of 6 River Systems, Inc.
