Acquisition strengthens company’s leadership in the food retail, food distribution, and health and wellness categories
SPS Commerce, Inc., a leader in retail cloud services, today announced the acquisition of Genius Central, a software solution provider known for its expertise in the natural and organic foods industry.
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“We are excited about the acquisition of Genius Central, a leader in in-aisle ordering for natural and specialty food grocers,” said Archie Black, President and CEO of SPS Commerce. “We believe this partnership will strengthen SPS’ leadership in food retail, food distribution, and health and wellness, while we expand our community across the grocery industry.”
“Genius Central is excited about a partnership with SPS Commerce and combining two best-in-class companies to create an even greater impact on our customers,” said Angie Jula, Executive Director of Genius Central. “SPS shares Genius Central’s vision of building innovative technologies to simplify commerce and connect buyers and sellers. Both companies have a long track record of creating innovative solutions that are delivered by dedicated professionals.”
As part of the SPS Commerce community, Genius Central customers will have access to the industry’s broadest trading community, which includes more than 95,000 trading partners in over 80 countries.
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Acquisition Details
Under the terms of the agreement and plan of merger, SPS Commerce acquired Genius Central for approximately $17 million in cash.
For the fourth quarter of 2021, SPS Commerce anticipates the acquisition will add approximately $450,000 of revenue and have a nominal negative impact to fourth quarter and full year Adjusted EBITDA. For fiscal year 2022, the company expects the acquisition will add approximately $3 million in revenue, and to be accretive to Adjusted EBITDA in the first 12 months following the acquisition, contributing approximately $1 million to Adjusted EBITDA in fiscal year 2023 and beyond.