Acquisition strengthens company’s leadership in the automotive aftermarket industry
SPS Commerce, Inc. , a leader in retail cloud services, announced the acquisition of GCommerce, a leading EDI provider within the automotive aftermarket industry.
“We are excited about the acquisition of GCommerce, a software solution provider known for its expertise in the automotive aftermarket industry,” said Archie Black, CEO of SPS Commerce. “We are pleased to welcome GCommerce employees and customers to the SPS Commerce community, and I am looking forward to capitalizing on our joint passion for innovation and focus on excellent customer experience.”
“GCommerce is excited to join SPS Commerce, which marks the next phase in our strategy to deliver compelling solutions and value to our customers,” said Steven Smith, CEO of GCommerce. “For two decades, GCommerce has delivered transformative solutions to make our customers more competitive. SPS Commerce shares our vision of helping trading partners work better together through people, process and innovation.”
As part of the SPS Commerce community, GCommerce customers will have access to the industry’s broadest trading community, which includes more than 105,000 trading partners in over 80 countries.
Read More: Return Of The Highstreet? 40% Of Ecommerce Businesses In Europe Plan To Open A Physical Store
Acquisition Details
Under the terms of the agreement and plan of merger, SPS Commerce acquired GCommerce for approximately $45 million in cash.
For the third quarter of 2022, SPS Commerce anticipates the acquisition will add approximately $1 million of revenue and expects Adjusted EBITDA to be negatively impacted by approximately $300,000. For fiscal year 2022, the Company expects the acquisition will add approximately $2.5 million in revenue and expects Adjusted EBITDA to be negatively impacted by approximately $300,000. The Company expects the acquisition to contribute approximately $7 million in revenue and approximately $2.5 million in Adjusted EBITDA in fiscal year 2023.
The Company will provide consolidated third quarter 2022 guidance and an update to the full year 2022 outlook in its second quarter financial results press release to be issued on July 27, 2022.
Read More: SalesTechStar Interview with Miles Kirkpatrick, Chief Revenue Officer at Productiv
