Canada-based e-commerce firm Shopify, Inc. (NYSE: SHOP) is in talks to acquire e-commerce fulfillment company Deliverr, a report published by Bloomberg said citing people with knowledge of the matter.
The deal, if finalized, will value Deliverr at over $2 billion, the sources said. Data from Bloomberg showed that the deal would be Shopify’s largest so far.
San Francisco-based Deliverr provides rapid delivery service to e-commerce platforms like Amazon (NASDAQ: AMZN) and eBay (NASDAQ: EBAY).
Anurag Rana, an analyst at Bloomberg Intelligence, said, “This would be a small step in the right direction, especially as Amazon.com has doubled its logistics network in the past two years. Unlike Amazon, Shopify doesn’t own large distribution centers and depends on third-party companies to provide faster shipping to its merchants.”
Price Target
Overall, Shopify has a Moderate Buy consensus rating based on 14 Buys and 14 Holds. SHOP’s average price target of $996.26 implies 91.3% upside potential from current levels. The stock has lost almost 60% over the past six months.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into Shopify’s performance.
According to the tool, Shopify’s website traffic registered a 12.5% rise in global visits in March, compared to February. Further, the footfall on the company’s website has grown 158.1% year-to-date against the same period last year.
Conclusion
The acquisition of Deliverr will complement Shopify’s subscription-based software and expand its fulfillment services.
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