Digital commerce software provider Lightspeed POS has agreed to buy US-headquartered point-of-sale technology producer ShopKeep in a $440m deal that will allow corporates Salesforce and First Data to exit.
The transaction will consist of about $145m in cash and the remainder in the form of about 9.5 million Lightspeed shares. RBC Capital Markets advised Lightspeed on the acquisition.
ShopKeep provides technology that allows small businesses such as restaurants or independent retailers to accept digital payments online and in real life, in addition to tools such as automated inventory tracking, employee management and sales reports in real time.
Lightspeed’s founder and chief executive, Dax Dasilva, said: “ShopKeep’s commitment to enabling independent businesses to dream big and rise above industry and economic challenges is deeply aligned with our own mission to power the future of commerce.
“This acquisition will bring ShopKeep merchants, small and medium-sized businesses that make up the backbone of the US economy into the Lightspeed family, providing them even more crucial product innovation and world-class support as they drive the reinvention of American commerce.”
The deal comes after more than $162m in debt and equity financing for ShopKeep since it was founded in 2008.
The company’s last round involved it raising $65m in a late 2018 debt and equity round featuring Salesforce Ventures, part of enterprise software provider Salesforce, and financial services provider First Data.
The equity portion of the 2018 round was led by Tribeca Venture Partners and the debt financing came from Orix Growth Capital and Square 1 Bank, subsidiaries of financial services firms Orix and Pacific Western Bank respectively.
Tribeca Venture Partners was an existing investor in ShopKeep. Its earlier backers include TTV Capital, Canaan Partners, Thayer Street Partners and Activant Capital.
Photo courtesy of ShopKeep, Inc.
