WeCommerce Acquires Assets of Archetype Themes Inc.
WeCommerce Holdings Ltd. has signed a definitive purchase agreement to acquire substantially all of the assets of Archetype Themes Inc. for US$20 million upfront and contingent consideration of up to US$12 million. Archetype is a designer and developer of themes used by over 60,000 Shopify merchants. Archetype will continue to operate as an independent brand […]
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WeCommerce Holdings Ltd. has signed a definitive purchase agreement to acquire substantially all of the assets of Archetype Themes Inc. for US$20 million upfront and contingent consideration of up to US$12 million. Archetype is a designer and developer of themes used by over 60,000 Shopify merchants.
Archetype will continue to operate as an independent brand post-acquisition. Combined with Pixel Union and Out of the Sandbox, WeCommerce-owned themes will comprise five of the top-seven paid themes in the Shopify Theme Store. This acquisition advances WeCommerce’s strategy to build, acquire and invest in the world’s top Shopify technology businesses.
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The upfront consideration represents a multiple of approximately five times EBITDA, based on Archetype’s unaudited financial statements for the trailing twelve months period ended March 31, 2021. WeCommerce expects to fund the upfront consideration through a combination of cash on hand and borrowings under its senior secured credit facility.
“Archetype has built a top brand in the Shopify partner ecosystem,” Alex Persson, President and Interim Chief Financial Officer added. “In the coming days, all of Archetype’s themes will be updated for Shopify’s Online Store 2.0 architecture, which we believe will unlock further flexibility and value for merchants.”
Pursuant to the purchase agreement, WeCommerce has agreed to pay Archetype an aggregate purchase price of up to US$32 million.