Lightspeed Acquires Ecwid and Nuorder - E-commerce Consolidation

Lightspeed Continues Acquisition Strategy with Ecwid and NuOrder

Lightspeed is expanding its portfolio through acquisitions, recently announcing plans to acquire both Ecwid and NuOrder. The Canadian point-of-sale software company will acquire e-commerce platform Ecwid for $500 million and B2B ordering platform NuOrder for $425 million.

Industry Consolidation and Digital Transactions

These acquisitions highlight the increasing trend of consolidation within the e-commerce sector. This movement is occurring as digital transactions become increasingly vital in the global economy, particularly in the wake of the COVID-19 pandemic.

Smaller businesses are actively seeking enhanced tools and services to effectively compete with larger entities like Amazon and Stripe. These solutions aim to address the diverse requirements of merchants, brands, and suppliers.

Lightspeed’s Vision for Unified Commerce

“By integrating Ecwid and NuOrder, Lightspeed will function as a central hub connecting merchants, suppliers, and consumers,” stated Dax Dasilva, founder and CEO of Lightspeed. “This integration will empower innovative retailers to adapt to the evolving landscape of commerce.”

He further expressed hope that these tools will encourage entrepreneurship by simplifying operations and facilitating growth as economies recover and business creation accelerates.

Deal Details and Financials

The acquisition of Ecwid will involve a payment of $175 million in cash and $325 million in shares. For NuOrder, Lightspeed will pay $212.5 million in cash and $212.5 million in shares.

Both transactions are anticipated to be finalized by the end of September, contingent upon regulatory approvals and the fulfillment of other standard conditions.

Expanding Beyond Point-of-Sale

Lightspeed, currently valued at approximately $9.4 billion, has been actively pursuing acquisitions to evolve beyond its core point-of-sale software. The company aims to become a comprehensive, end-to-end solution for its customers.

This strategy was previously demonstrated with the acquisition of Upserve in December for $430 million, strengthening its position within the restaurant industry.

Ecwid’s Background and Growth

Ecwid initially gained recognition as a key partner to Facebook, assisting small businesses in establishing commerce capabilities on the social media platform. The platform subsequently broadened its offerings to support merchants utilizing services like Square and Wix.

It also integrates with platforms such as Instagram and Google, sometimes competing with, but also complementing, other e-commerce systems like Shopify.

Investment and Revenue

Founded in Russia, Ecwid remained largely unnoticed by venture capitalists until last year when it secured $42 million in funding from Morgan Stanley and PeakSpan Capital to accelerate its expansion.

The company currently serves 130,000 paying customers across over 100 countries. Lightspeed reported that Ecwid generated revenue exceeding $20 million in the year ending March, representing a 50% year-over-year growth rate.

A Vision for Democratizing Retail

“The line between online and physical retail has blurred. Lightspeed and Ecwid, both leading platforms, will combine to empower businesses,” said Ruslan Fazlyev, CEO of Ecwid. “By removing obstacles to online selling, we will accelerate our shared goal of democratizing retail for independent businesses globally.”

NuOrder’s Role in Supplier Relationships

NuOrder will enhance Lightspeed’s capabilities in managing supplier relationships and transactions, a crucial aspect of commerce. Lightspeed has already been developing this area through its Lightspeed Supplier Network.

NuOrder boasts a customer base of 3,000 brands and 100,000 retailers, including prominent names like Canada Goose, Converse, and Arc’teryx. The platform facilitated $11.5 billion in orders during the year ending in March.

NuOrder’s Financial Performance

Similar to Ecwid, NuOrder also reported revenue of $20 million in the same period, with a year-over-year growth rate of 30%.

Accelerating the Future of Commerce

“At NuORDER, our focus has been on transforming retail by creating a global network for brands and retailers,” stated Olivia Skuza and Heath Wells, co-founders and co-CEOs of NuOrder. “The combination of Lightspeed and NuORDER will dramatically accelerate this vision.”

They added, “This represents a pivotal moment in the evolution of retail, bringing the power of connected commerce to life.”