SPS Commerce Acquires InterTrade Systems Inc.
Acquisition strengthens company’s leadership across apparel and general merchandise industries
SPS Commerce, Inc., a leader in retail cloud services, announced the acquisition of InterTrade Systems Inc., a wholly owned subsidiary of mdf commerce inc., and a provider of technical solutions for product, information and transaction data exchange between retailers and suppliers.
“With the acquisition of InterTrade, SPS Commerce expands its network to thousands of businesses across North America, including marquee retailers and brands in apparel and general merchandise,” said Archie Black, CEO of SPS Commerce. “We are pleased to welcome InterTrade employees and customers to our growing network of trading partners, and I am looking forward to working together to be the world’s retail network.”
As part of the SPS Commerce community, InterTrade customers will have access to the industry’s broadest trading network, which includes more than 105,000 trading partners in over 80 countries.
Under the terms of the purchase agreement, SPS Commerce acquired InterTrade for approximately $49 million in cash.
For the fourth quarter of 2022, SPS Commerce anticipates the acquisition will add approximately $1.7 million of revenue and expects Adjusted EBITDA to be negatively impacted by approximately $200,000. For fiscal year 2023, the Company expects the acquisition will add approximately $8.5 million in revenue and approximately $500,000 to Adjusted EBITDA. The Company also expects the acquisition to contribute approximately $2.5 million in Adjusted EBITDA in fiscal year 2024.
The Company will provide consolidated fourth quarter 2022 guidance and an update to the full year 2022 outlook in its third quarter financial results press release to be issued on October 27, 2022.