WeCommerce closed a deal to acquire mobile-first Shopify tool Archetype Themes for $20 million upfront and a contingent consideration of up to $12 million, according to a Friday (Aug. 6) press release.
Archetype has won praise as a designer and developer of themes used by more than 60,000 Shopify merchants. Its Impulse theme is the most popular in the Shopify Theme Store, per the release.
“Archetype’s stunning themes portfolio is loved by merchants large and small, helping them attract and convert customers through high performing and thoughtfully designed premium storefronts,” said WeCommerce CEO Chris Sparling.
The tie-up will not change Archetype’s status as an independent brand. But combined with Pixel Union and Out of the Sandbox, WeCommerce-owned themes will command a leadership position in terms of paid themes in the Shopify store.
WeCommerce’s purchase of Archetype is valued at roughly five times EBITDA, which is according to Archetype’s unaudited financial statements ending in March.
“Archetype has built a top brand in the Shopify partner ecosystem,” said WeCommerce President and Interim Chief Financial Officer Alex Persson.
“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,” Persson added.
Archetype Co-Founder and Chief Technical Officer Carson Shold said the company is “thrilled” to join WeCommerce, which has a “proven track record” of helping companies build out and expand in the eCommerce space.
WeCommerce’s experience and shared long-term vision of the partner ecosystem made them the clear choice,” Shold said.
WeCommerce offers a full offering of eCommerce software tools that aim to hekpo businesses launch and grows their digital stores. The company has worked with brands including Pixel Union, Out of the Sandbox, Yopify, SuppleApps, Rehash, Foursixty and Stamped.