Lightspeed POS is set to acquire Vend, a retail management software company based in New Zealand, for approximately $350 million USD in a cash and stock deal.
The companies have entered into a definitive agreement, and the deal is set to close at the end of April. The proposed transaction would consist of $192.5 million in cash and the issuance of subordinate voting shares in the capital of Lightspeed, totalling $157.5 million.
The deal would approximately double Lightspeed’s customer base in the Asia-Pacific.
In a statement, Lightspeed noted the proposed deal is intended to strengthen Lightspeed’s global retail base, particularly in the Asia-Pacific. The deal would approximately double Lightspeed’s customer base in that region. Following the closing of the deal, Lightspeed would have over 135,000 customer locations globally.
“We are thrilled to partner with Vend, a team that matches Lightspeed’s passion for retail,” said Dax Dasilva, founder and CEO of Lightspeed. “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.”
In a statement Thursday, Lightspeed claimed Vend generated revenue of approximately $34 million and gross transaction volume of more than $7 billion in 2020.
Vend’s software allows merchants to generate reports on sales, inventory, and customer behaviour. Vend has integrations with partners like Shopify and WooCommerce that help retailers sell online. The company’s services span web-based POS software, inventory management, E-commerce, customer loyalty, and reporting analytics.
Lightspeed said it intends to use Vend’s technology stack and user experience capabilities to augment its own offering.
“Lightspeed’s global excellence and commitment to community is inspirational to Vend,” said Ana Wight, CEO of Vend. “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.”
This acquisition comes three months after Lightspeed announced plans to acquire Upserve, a restaurant management cloud-software company based in Rhode Island, for approximately $430 million. In November, Lightspeed also acquired ShopKeep for $145.2 million in cash and the issuance of 7,437,397 subordinate voting shares.
The acquisition is also the latest development in what has been a very busy year for Lightspeed. The Montreal-based company began trading on the New York Stock Exchange in November, after closing an initial public offering at $397.7 million. In its most recent financial results, Lightspeed reported a 79 percent year-over-year increase in revenue for its fiscal third-quarter 2021.