SPS Commerce Acquires SupplyPike.
Date – 01-Aug-2024
The acquisition enhances the company’s product portfolio with automated invoice deduction management and prevention tools.
SPS Commerce, Inc. Announces Acquisition of SupplyPike to Enhance Retail Supply Chain Services
SPS Commerce, Inc., a leader in retail supply chain cloud services, today announced the acquisition of SupplyPike, an innovative solution for automated invoice deduction management and prevention.
SupplyPike is the first SaaS solution of its kind, offering continuous monitoring and management of invoice deductions. It helps businesses recover lost revenue and provides insights to improve processes, thereby reducing future deductions.
“The retail supply chain is highly interdependent, requiring close collaboration between trading partners,” said Chad Collins, CEO of SPS Commerce. “With the acquisition of SupplyPike, SPS Commerce expands its offerings, giving suppliers new tools to better meet retail customers’ expectations through automated process monitoring, education, improvement, and dispute resolution.”
Dan Sanker, Founder and CEO of SupplyPike, added, “By joining forces with SPS Commerce, we are creating an industry-leading resource that will help suppliers reduce supply chain errors and strengthen their relationships with customers.”
Acquisition Details
SPS Commerce acquired SupplyPike for approximately $119 million in cash, net of cash acquired, and $87 million in SPS Commerce stock.
For the third quarter of 2024, SPS Commerce expects the acquisition to add approximately $3.0 million in revenue, with an estimated $750,000 negative impact on Adjusted EBITDA.
For fiscal year 2024, the acquisition is expected to contribute approximately $8.0 million in revenue, with an estimated $1.5 million negative impact on Adjusted EBITDA.
For fiscal year 2025, SPS Commerce anticipates the acquisition will generate approximately $25.0 million in revenue and achieve breakeven in Adjusted EBITDA.
Further details, including the amortization expense associated with the acquisition, will be provided when the company reports its third quarter results in October 2024.
