Archetype is a leading designer and developer of premium themes used by over 60,000 Shopify merchants. Its Impulse theme is the #1 ranked theme based on popularity in the Shopify Theme Store.
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 most popular 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.
WeCommerce will pay USD $20 million upfront, representing a multiple of approximately five times EBITDA, and contingent consideration of up to USD $12 million. WeCommerce will fund the acquisition through a combination of cash on hand and borrowings under its senior secured credit facility.
“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 Chris Sparling, CEO of WeCommerce.
“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.”
“We are thrilled to be part of WeCommerce,” said Carson Shold, Co-founder and CTO of Archetype. “WeCommerce has a proven track record of building and growing companies in the Shopify space. WeCommerce’s experience and shared long-term vision of the partner ecosystem made them the clear choice.”