Shares of Shopify Inc. (NYSE: SHOP) saw a handy gain early on Monday after the company announced that it will be acquiring privately held Boltmade. Ultimately the goal of this acquisition is to accelerate the development of the Shopify Plus product offering.
For some background: Boltmade was founded in 2013 and it is a 21-person product-focused digital consulting firm that designs and builds software products for early-stage startups to Fortune 500 companies. The Boltmade team will join the Shopify Plus office in Waterloo, Ontario.
Shopify Plus offers high-growth, high-volume merchants a cloud-based, fully hosted enterprise commerce platform, without the limitations of legacy solutions.
Loren Padelford, vice president of Shopify Plus, commented:
We first worked with the Boltmade team in early 2016 and quickly realized the team’s huge potential and depth of talent. Shopify is committed to investing in talent. The acquisition of Boltmade will bring a strong group of designers and engineers to Shopify Plus. We’re thrilled to have them join our team to help shape the future of commerce for larger merchants.
Jim Murphy, founder and president of Boltmade, added:
Shopify has had a big impact on commerce by helping businesses of all sizes achieve success. Earlier this year, we jumped at the chance to work on a project with them. We’re excited to be joining Shopify Plus to help some of the most recognizable, fastest-growing brands in the world sell billions of dollars of product.
Excluding Monday’s move, Shopify has outperformed the broad markets, with the stock up about 66% year to date. Over the past 52 weeks, the stock is up only about 22%.
Shares of Shopify closed recently at $42.92, with a consensus analyst price target of $44.56 and a 52-week trading range of $18.48 to $45.20. Following the announcement, the stock was up about 5% at $45.06 in early trading indications Monday.