![]() ![]() ![]() companies last fall that provide restaurant management software: Upserve Inc. The company agreed to pay a combined US$870-million for two U.S. With the two latest deals, Lightspeed has now committed U$2-billion to five acquisitions in the past seven months. A key question is Lightspeed’s ability to innovate at the rate of some larger competitors” such as Shopify. ![]() I think Lightspeed sees the value of being in both places. You have successful direct-to-consumer e-commerce retailers opening offline stores and offline going online as quickly and efficiently as they can. “The retail world is smashing together, and going omnichannel. The two acquisitions “are very different than Lightspeed’s previous deals,” ATB Financial analyst Martin Toner said in an interview. That provides an opportunity to accelerate the company’s revenue growth, Mr. Both acquired companies have relied on outside payments processing providers, while Lightspeed has driven much of its recent gains by providing its own payment service to its 140,000 clients. Chief financial officer Brandon Nussey called the deals “cornerstone acquisitions” that would bring significant potential for revenue and profit gains, particularly as the economy opens up postpandemic. Lightspeed is paying 15 times projected current-year revenue for the two companies, which an analyst said on the call seemed relatively high. “They could have a strong, defensible competitive position longer term” thanks to the purchase. “Clearly this seems like a new growth vector for the company,” BMO Capital Markets analyst Thanos Moschopoulos said in an interview. With NuORDER, Lightspeed will advance its fledgling strategy to supply goods to its merchant customers by three to five years, Mr. “You could say that we have an offering now that is getting closer to Shopify,” he acknowledged.Įcwid is a fraction of Shopify’s size, and grew at a rate of more than 50 per cent a year to March, 2021, compared with Shopify’s 86-per-cent year-over-year revenue growth in 2020. While Lightspeed has in the past highlighted its capabilities to provide “omnichannel” service to customers for both in person and online transactions. “Today we are really good at e-commerce, but we need to do much more than that,” president Jean Paul Chauvet said. Lightspeed executives highlighted that as a key benefit on a conference call with analysts to discuss the transactions. Is Canada in line to be the next Silicon Valley?Įcwid, like Shopify, is more of a pure e-commerce platform that enables companies to sell through a range of online channels, including social-media websites and marketplaces. “Quite frankly, it looks like they are heading directly for Shopify.” But “unlike their previous acquisitions which have been to expand their market reach, it looks like today’s acquisitions are to expand on their technical capabilities, making their platform more attractive to prospective merchants while growing their addressable market size with new services,” National Bank Financial analyst Richard Tse said. ![]() The acquisitions enhance Lightspeed’s reach as a provider of point-of-sale software providers to retailers, restaurants, golf and hospitality businesses. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |