New Zealand cloud-based retail management software provider Vend has struck a deal to be acquired by Canadian omnichannel commerce solutions vendor Lightspeed for US$350 million.
Founded by director Vaughan Fergusson (previously Rowsell) in 2010, Auckland-based Vend has gone on to generate revenue of approximately US$34 million and gross transaction value of more than US$7 billion in the trailing twelve-month period ending 31 December 2020 alone.
Lightspeed, meanwhile, is headquartered in Montreal and publicly listed in both Canada and the United States. The company claims customers in more than 100 countries and an annual gross transaction value of around US$20 billion.
While the total acquisition value comes to US$350 million, approximately US$192.5 million of this will be in cash and US$157.5 million in the form of subordinate voting shares in the capital of Lightspeed.
The Vend acquisition is expected to see Lightspeed grow its customer base by more than 20,000 customer locations worldwide and roughly double its customer base in the Asia Pacific region.
Moreover, it is hoped the deal will strengthen Lightspeed's global retail base and reinforce the company’s market presence as a major omnichannel retail platform for small and medium-sized businesses.
Broadly, Lightspeed intends to leverage Vend's complementary technology stack and user experience capabilities, with the combination of Lightspeed and the talent and technology of Vend set to enable further growth by providing the Vend customer base access to the Canadian company’s broader commerce solutions.
"Lightspeed's global excellence and commitment to community is inspirational to Vend," Vend CEO Ana Wight said. "By joining forces, we will power the global transformation of retail and pour our unparalleled collective efforts into the success of our retailers at this pivotal moment in our industry.
“As a New Zealand-based company, we're proud to be globally recognized for the product and company we have built and are excited about this next step in our journey,” she added.
The deal, which is subject to customary closing conditions and post-closing working capital adjustment, is expected to close towards the end of April, subject to the receipt of applicable regulatory approvals.
"We are thrilled to partner with Vend, a team that matches Lightspeed's passion for retail,” Dax Dasilva, founder and CEO of Lightspeed, said. “That combined drive will position our global retail base of high-performing businesses for success as they emerge from a truly transformational period in the history of modern commerce.”