SPS Commerce (SPSC) Acquires SupplyPike

SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced the acquisition of SupplyPike, an automated invoice deduction management and prevention solution.

SupplyPike is a first of its kind SaaS solution that provides ongoing monitoring and management of invoice deductions to recover lost revenue along with the information needed to improve processes and eliminate deductions in the future.

“The interdependent nature of the retail supply chain necessitates close collaboration between trading partners,” said Chad Collins, CEO of SPS Commerce. “With the acquisition of SupplyPike, SPS Commerce now offers an additional way for suppliers to understand and improve their ability to meet their retail customers’ expectations, with automated process monitoring, education, and improvement, and dispute resolution capabilities.”

“We believe by combining SupplyPike with SPS Commerce, we are providing an industry-leading knowledgebase of resources to reduce supply chain missteps and strengthen suppliers’ relationships with their customers,” said Dan Sanker, Founder and CEO of SupplyPike.

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 anticipates the acquisition will add approximately $3.0 million in revenue and expects Adjusted EBITDA to be negatively impacted by approximately $750,000.

For fiscal year 2024, the company expects the acquisition will add approximately $8.0 million in revenue and expects Adjusted EBITDA to be negatively impacted by approximately $1.5 million.

For fiscal year 2025, the company expects the acquisition will add approximately $25.0 million in revenue and breakeven in Adjusted EBITDA.

Additional details, including the amortization expense associated with the acquisition, will be provided when the company reports third quarter results in October 2024.

Conference Call

SPS Commerce will host a conference call today at 8:30 a.m. ET (7:30 a.m. CT). To access the call, please dial 1-800-715-9871, or outside the U.S. 1-646-307-1963 at least 15 minutes prior to the 8:30 a.m. ET start time. Please ask to join the SPS Commerce Conference Call or provide Conference ID 2351446. A live webcast of the call will also be available at http://investors.spscommerce.com under the Events and Presentations menu. The replay will also be available on our website at http://investors.spscommerce.com.

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