SPS Commerce (NASDAQ: SPSC) announced its acquisition of Traverse Systems, a retail software-as-a-service platform, on Thursday.
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.
Sugarland, Texas-based Traverse Systems' SaaS provides retailers an overall view of their operations' supply chain performance. The company was founded by former retail practitioners in 2000 and has since grown to serve brands such as CVS, Michaels, Kohls, Burlington Stores and others.
Minneapolis-based SPS Commerce last year acquired TIE Kitetix (NYSE: TIE), a supply chain digitalization company based in the Netherlands, for $72 million.
“Retailers and suppliers using our leading retail network are continuously seeking to improve supply chain performance,” said SPD CEO Chad Collins in a statement. “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.”
The company expects the acquisition will add approximately $2.9 million in revenue for fiscal year 2024; adjusted earnings before income taxes, depreciation, inflation and amortization are expected to be unchanged by the deal
For the first quarter of 2024, SPS Commerce's revenue was $149.6 million in the first quarter of 2024, compared to $125.9 million in that same period in 2023, reflecting 19% growth.
