SPSC - SPS Commerce Acquires Traverse Systems | Benzinga
Acquisition expands company's product portfolio in supply chain performance and optimization
Company to host conference call today at 8:30 a.m. ET
MINNEAPOLIS, May 09, 2024 (GLOBE NEWSWIRE) -- SPS Commerce, Inc. (NASDAQ:SPSC), a leader in retail supply chain cloud services, today announced the acquisition of Traverse Systems, an industry leading SaaS platform that provides retailers and their merchandise suppliers a unified view of supply chain performance to improve collaboration and enhance the consumer experience.
Traverse Systems provides scorecarding and vendor performance management solutions for retailers, driving supply chain efficiencies such as increased on-time and in-full shipments, enhanced inventory accuracy, greater visibility into inbound shipments, real-time disruption management, and improved invoice accuracy.
"Retailers and suppliers using our leading retail network are continuously seeking to improve supply chain performance," said Chad Collins, CEO of SPS Commerce. "Traverse Systems' expertise and proven track record in driving more streamlined collaboration between trading partners will benefit SPS customers and expand our capabilities in retail supply chain optimization."
"We believe by combining Traverse Systems' unique product offering with the SPS Commerce retail network, we can better enable retailers and their trading partners to seamlessly and effectively co-operate to meet consumer demand, reduce inefficiencies, and increase revenue," said Greg Holder, Co-Founder and CEO of Traverse Systems.
Acquisition Details
Under the terms of the purchase agreement, SPS Commerce acquired Traverse Systems for approximately $25 million in cash and $4.3 million in SPS Commerce stock.
For the second quarter of 2024, SPS Commerce anticipates the acquisition will add approximately $600,000 in revenue and expects Adjusted EBITDA to be negatively impacted by approximately $200,000.
For fiscal year 2024, the company expects the acquisition will add approximately $2.9 million in revenue and breakeven in Adjusted EBITDA.
For fiscal year 2025, the company expects the acquisition will add approximately $5 million in revenue and approximately $1.5 million in Adjusted EBITDA.
Additional details, including the amortization expense associated with the acquisition, will be provided when the company reports second quarter results in July 2024.
Conference Call
SPS Commerce ...