Shopify announced its agreement to acquire 6 River Systems (6RS) on September 9, 2019, at approximately US$450 million: about 60% cash and 40% Class A shares.
That amount included approximately US$69 million in shares and options for founders and employees, with conditional vesting and stock-compensation treatment. The awards were included in the announcement figure, not an additional cash payment.
The historical announcement gives an approximate package value and mix; it does not establish final purchase consideration or any seller’s net proceeds.
Shopify announced completion on October 17, 2019.
The historical releases described Shopify’s headquarters as Ottawa, Canada, and 6RS as based in Waltham, Massachusetts.
What the annual notes recorded
Note 22 of Shopify’s 2019 annual report records US$261.194 million cash and US$132.510 million in Class A subordinate voting shares for 100% of 6RS’s shares. Those components total US$393.704 million.
It separately records US$64.074 million in restricted shares and options as compensation for post-combination services. This is Shopify’s historical accounting treatment.
Note 17 identifies 122,080 restricted Class A shares with vesting contingent on continued employment. That statement covers this tranche, without establishing a schedule or departure consequence.
The condition cannot automatically be extended to every share and option in the separate service-award category.
These differently dated amounts do not establish a price cut.
For your package, ask which amounts buy the business, which depend on service, and which documents set their conditions.
For general information and education, not legal, tax, investment or valuation advice. Reported transactions do not predict your business’s value, financing terms or sale outcome. Consult qualified advisers about your situation.
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