Acquisitions of Ecwid and NuOrder will provide enhanced offerings to merchants
The legal team at Lightspeed HQ played an integral role in the company’s latest acquisitions of two digital commerce companies which were announced last week as part of an ongoing expansion plan. The Montreal-based point-of-sale software provider has agreed to pay US$500-million for Ecwid Inc. – a San Diego-based e-commerce platform, and US$425 million for NuOrder Inc. – a digital platform connecting businesses and suppliers. The acquisitions are expected to help Lightspeed expand its offerings to small and medium sized businesses.
As part of an integrated due diligence process, the legal department at Lightspeed serves as liaison between the business and the target of any new acquisition. The team is also responsible for ensuring cultural alignment and business alignment as part of the process.
“In our acquisitions we have a very extensive due diligence process, and one that carefully aligns not just legal considerations but business considerations and cultural considerations,” says Dan Micak, executive vice president, general counsel and corporate secretary at Lightspeed. “We don’t just farm these deals out to outside counsel. We have a dedicated M&A team that really does work in lockstep with outside counsel to quarterback the deal and usher things forward.” The team is working closely with Lightspeed’s corporate development team to manage any legal and business challenges that crop up during the closing process in these latest deals.
Micak’s team is also actively involved in the negotiation of each deal, to ensure that all stakeholders and their viewpoints are considered in the process of moving the deal from initial engagement to signature.
The acquisitions of Ecwid and NuOrder, will greatly enhance Lightspeed’s offerings, Micak says.
“We hope to give small and medium-sized businesses the tools that they need to simplify their operations and to provide exceptional customer experiences, and that’s really what Lightspeed is all about,” says Micak. “Theses acquisitions align very much with our core DNA and what we’re trying to provide to customers.”
The addition of Ecwid to Lightspeed’s portfolio will offer merchants the opportunity to create online storefronts more quickly, and to sell more easily through a variety of channels including social media, digital marketplaces and e-commerce stores.
“These are crucial tools that independent merchants really need to survive in the current climate and to grow as markets reopen,” says Micak.
Meanwhile, NuOrder will bring product visibility and accessibility to merchants, allowing them to quickly compare products from several vendors in a showroom-style format. It will allow for faster access to product information and stock inventory, and will therefore facilitate ordering and help merchants to manage supply chains. This aligns well with Lightspeed’s historical focus on relationships between merchants and their customers, Micak says. NuOrder is also expected to accelerate the growth of Lightspeed’s financial services offerings, including Lightspeed Payments and Lightspeed Capital.
As M&A continues to be part of Lightspeed’s ongoing strategy, Micak says the organization is still evaluating potential opportunities.
“We certainly plan to continue to be active and to use M&A to increase our geographic penetration to help us get new verticals and to help us expand our technological offerings,” says Micak.
