Image source: Shopify.
E-commerce platform Shopify (NYSE: SHOP) has announced that it has now acquired Boltmade, a small Canadian company that specializes in product design and software development. Boltmade consists of 21 employees and has a wide range of customers, including small start-ups as well as large companies.
Shopify says the acquisition will help accelerate the roadmap for Shopify Plus, the company's fully hosted enterprise e-commerce platform. No financial terms were disclosed. Boltmade's team will join Shopify's Waterloo, Canada, office.
Does it matter?
Shopify Plus is an extremely important offering for Shopify, as it caters to large brands with high-volume needs using a software-as-as-service (SaaS) model. The company launched Shopify Plus back in 2014, and continues to add large brands every quarter. For instance, Shopify Plus added Bose, Boeing, and numerous high-profile musicians last quarter.
Financially speaking, subscription revenue jumped 71% last quarter to $43.7 million. That may be slower growth than merchant revenue, but both segments are performing well and contributing to growth. Bolstering Shopify Plus with an acqui-hire makes plenty of sense, particularly if it didn't cost an arm and a leg.
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Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Shopify. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.