Wall Street analysts say that Lightspeed POS is a “buy” after the recent announcement that the company is acquiring e-commerce platforms Ecwid and NuORDER in two separate deals that total about $925 million.
The Montreal-based company is listed on both the New York Stock Exchange and the Toronto Stock Exchange under the ticker symbol "LSPD." As of 12:51 p.m. ET on June 8, Lightspeed shares were trading at $89.94—up over 3 percent. Analysts predict that the shares could go as high as $140.
The acquisition deals for both companies should be finalized by the end of September 2021.
"By joining forces with Ecwid and NuORDER, Lightspeed becomes the common thread uniting merchants, suppliers and consumers, a transformation we believe will enable innovative retailers to adapt to the new world of commerce," said Dax Dasilva, the founder and CEO of Lightspeed, in a company press release. "As economies reopen and business creation accelerates, we hope to embolden entrepreneurs with the tools they need to simplify their operations and scale their ambitions."
Lightspeed is purchasing Ecwid for $500 million.
Ecwid is a U.S.-based global e-commerce platform founded in 2009 that currently serves over 200,000 merchants in over 175 countries. In the past year, the company generated revenues of over $20 million. Its growth rate is more than 50 percent YoY.
The integration of Lightspeed and Ecwid will enable merchants to reach shoppers where they are, whether they are on social media or digital marketplaces, Lightspeed officials say.
The $500 million acquisition deal includes $175 million in cash and about $325 million in Lightspeed shares.
"Lightspeed and Ecwid, two best-in-class platforms, will unite to truly empower businesses. By eliminating the barriers merchants face when selling online, we will only more rapidly achieve our common vision of democratizing retail for independent businesses worldwide," said Ecwid CEO Ruslan Fazlyev.
Lightspeed is paying $425 million for NuORDER.
The acquisition of NuORDER is estimated to be about $425 million, split between $212.5 million in cash and another $212.5 million in Lightspeed shares.
Founded in 2011, NuORDER is a digital wholesale e-commerce platform that serves over 3,000 brands. Over the past year, more than 100,000 retailers made over $11.5 billion in orders with the platform. Revenues of over $20 million grew 30 percent YoY for the same period.
Through the acquisition of NuORDER, Lightspeed officials hope that they can create an industry-leading bridge between the merchant and supplier experience, simplify product ordering for retailers, and offer brands insight into how products move.
"We are thrilled to join forces with Lightspeed to unlock transformative value for brands and retailers globally,” said NuORDER co-founders and co-CEOs Olivia Skuza and Heath Wells.
What is Lightspeed?
Founded in 2005, Lightspeed is a cloud-based point-of-sale and e-commerce company. Its platform serves retail, hospitality, and golf businesses in over 100 countries.
The company started trading on the New York Stock Exchange in September 2020.
Lightspeed officials say that both acquisitions will give their customers new entry points to the digital economy, unprecedented supply chain management, and increased opportunities to provide outstanding customer experiences online.