Lightspeed to Acquire Two E-Commerce Platforms for $925 M; Street Says Buy

Lightspeed POS Inc (LSPD), an e-commerce software and point-of-sale provider, announced Monday it will buy Ecwid and NuORDER, two global digital commerce companies, for $925 million.

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The Montreal-based company said that these two acquisitions will allow Lightspeed to unify the retail ecosystem and foster business creation. Ecwid and NuORDER both generated $20 million in revenues in their last quarter. They grew by more than 50% and 30%, respectively, year-on-year.

The acquisition of the Ecwid platform will cost Lightspeed approximately $500 million. As for the acquisition of NuORDER, it will cost $425 million.

Lightspeed’s CEO Dax Dasilva said, “By joining forces with Ecwid and NuORDER, Lightspeed becomes the common thread uniting merchants, suppliers and consumers, a transformation that we believe will enable innovative retailers to adapt to the new world of commerce. As economies reopen and business creation accelerates, we hope to embolden entrepreneurs with the tools they need to simplify their operations and increase their ambitions.”

The deal is expected to be completed before September 30, upon regulatory approvals. (See Lighstspeed POS Inc stock analysis on TipRanks)

Last week, BTIG analyst Mark Palmer maintained a Buy rating on the stock with a C$115.00 price target. This implies 32% upside potential.

Consensus among analysts is a Strong Buy based on 9 Buys and 1 Hold. The LSPD average analyst price target of C$114.27 implies 31% upside potential to current levels. Shares have risen by approximately 3% year-to-date.

TipRanks’ Smart Score

LSPD scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock returns are likely to outperform the overall market.