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Lightspeed Closes Acquisition of US Cloud Commerce Platform Provider ShopKeep
Friday 27 November 2020

Canada-based cloud-based, omnichannel commerce platforms provider Lightspeed POS Inc. (NYSE: LSPD) (TSX: LSPD) has closed the acquisition of US-based cloud commerce platform provider ShopKeep Inc. (ShopKeep), the company said.

Lightspeed acquired ShopKeep for a total estimated consideration of approximately USD 440m, satisfied by way of payment on closing of USD 145.2m in cash and the issuance of 9.5m subordinate voting shares in the capital of Lightspeed, subject to the adjustment mechanisms.

This acquisition reinforces Lightspeed's status as a category leader for complex retailers and restaurateurs seeking to modernize their operations as the global economy undergoes unprecedented digital acceleration.

COVID-19 is forcing independent businesses to urgently replace legacy point-of-sale systems in order to remain operational and safely adapt to evolving consumer behaviors.

The scale achieved by the combination of Lightspeed and ShopKeep presents retail and restaurant business owners in the United States with enhanced resources to pivot their operations.

Lightspeed's analytics, loyalty, e-commerce, and payments modules, in addition to its multi-location solution, will offer ShopKeep's customer base the opportunity to enhance their capabilities.

The acquisition immediately expands Lightspeed's US market share, allowing for increased investment in sales, marketing, and research and development to capitalize on the increasing demand for modern, cloud-based, omnichannel commerce solutions.

Following the closing of the acquisition, Lightspeed will serve over 100,000 customer locations1 worldwide, generating approximately USD 33bn in gross transaction volume2 (GTV).

The acquisition will generate strong expected synergies resulting from increased GTV, the ability to leverage integrated go-to-market resources and a combined payments opportunity.

With closing, Lightspeed's acquisition of ShopKeep will follow the successful integration of multiple premier platforms that experienced accelerated growth following their acquisitions by Lightspeed, including that of Montréal-based Chronogolf, Sydney-based Kounta and Berlin-based Gastrofix.

ShopKeep generated revenue of approximately USD 50m and GTV of approximately USD 7bn in the trailing twelve month period ending September 2020.

RBC Capital Markets acted as advisor to Lightspeed on the transaction.
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Date Published: 27/11/2020

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