Point-of-sale vendor Lightspeed is acquiring rival ShopKeep in a $440 million deal that signals further consolidation in the industry. Lightspeed said the acquisition will accelerate its growth as an emerging category leader following its recent initial public offering.
Both Lightspeed and ShopKeep develop POS technology for small and medium sized businesses, with portfolios geared toward retailers and restaurants.
Lightspeed offers specialized point-of-sale systems for restaurants, retail, and e-commerce operations. Its cloud-based software lets businesses manage inventory and marketing, monitor sales, manage employees, and process payments. The software also works with third-party platforms for additional marketing, customer loyalty, and employee management capabilities.
Lightspeed went public on the New York Stock Exchange in September, raising over $397 million.
ShopKeep, meanwhile, is an iPad-based point-of-sale system for retailers and restaurants that also manages customer information, marketing, inventory, staff, and payments. Additional features include customized reports, the ability to view sales by the hour and to track top customers, labor tracking, shift summaries, and performance reports.
Based in Montreal, Canada, Lightspeed said the acquisition will immediately expands its US market share, and allow for increased investment in sales, marketing, and research and development. When the acquisition closes, Lightspeed expects to have over 100,000 customer locations worldwide, generating approximately $33 billion USD in gross transaction volume.
"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," said Lightspeed CEO Dax Dasilva. "This acquisition will bring ShopKeep merchants, small and medium-sized businesses that make up the backbone of the U.S economy, into the Lightspeed family, providing them even more crucial product innovation and world-class support as they drive the reinvention of American commerce."