E-commerce technology company Shopify Inc. is buying warehouse robot-maker 6 River Systems Inc. for approximately $450 million as it deepens its move into physical distribution. 6 River Systems makes software and autonomous mobile robots that guide workers through warehouse aisles, lighting up when they reach the next item to pick. Customers for the units, known as collaborative robots because they work alongside human staffers, include Office Depot Inc., Lockheed Martin Corp. and XPO Logistics Inc. Founded in 2015, Waltham, Mass.-based 6 River Systems includes veterans from warehouse robotics company Kiva Systems, which was bought by Amazon.com Inc. in 2012 and became the foundation of the e-commerce giant’s push to automate its fulfillment operations. The company raised $25 million in Series B funding last year. Ottawa-based Shopify provides internet shopping platforms and other services that help customers such as Unilever PLC, Kylie Cosmetics and footwear maker Allbirds Inc. sell items online. Earlier this year, Shopify rolled out a service offering customers access to a network of dedicated U.S. fulfillment centers to store and ship consumer goods for online orders, a move aimed at helping retailers speed up delivery as they compete with Amazon. Automation is gaining more traction among logistics companies and online fulfillment providers as they push to ship products faster to consumers. Warehouse operators also are competing for workers in an extremely tight labor market. Proponents of collaborative robots say they can be added quickly to distribution centers to boost output more efficiently and cheaply than conventional automation systems such as conveyor belts. Shopify Chief Executive Tobi Lütke said the company is pushing further into fulfillment and distribution to help small and medium-size businesses “access those things much earlier…It’s really tricky to scale a retail business and deliver product quickly all over the continent.” Mr. Lütke added that the company didn’t plan to limit use of the collaborative robots by other logistics providers. “We don’t see it as competition,” he said. “We are building the Shopify fulfillment network primarily for people who are not using” such services. The $450 million deal, consisting of 60% in cash and 40% in Shopify Class A Subordinate Voting Shares, is set to close in the fourth quarter of 2019. “This acquisition is a sign that the market is accelerating and in fact, we’re on the cusp of a golden age of robotics,” Matt Murphy, a managing partner at 6 River Systems investor Menlo Ventures and a member of the startup’s board, wrote in a blog post on the acquisition. “As a category, ‘logistics and warehousing’ was the lowest hanging fruit for automation but it’s a great example of a sector quickly transformed by automation,” Mr. Murphy wrote. “We expect many more robotics companies to break out across a variety of sectors.” Write to Jennifer Smith at jennifer.smith@wsj.com Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Canadian e - commerce firm Shopify has acquired warehouse robot manufacturer 6 River Systems for around $ 450 m . The purchase , which includes 60 % cash and 40 % stock , marks the e - commerce platform 's further commitment to physical distribution , taking on the Massachusetts - based company 's autonomous mobile robots , which work collaboratively with workers to guide them to aisles and light up when reaching an item 's location . Shopify aims to offer an efficient distribution service to small and medium - sized businesses for swift delivery across North America , leveraging automation technology to help compete against competitors .