SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail cloud
services, today announced the acquisition of Data Masons, a
provider of EDI solutions to hundreds of consumer goods, industrial
and distribution businesses and resellers.
"We are excited about the acquisition of Data Masons. Together,
SPS Commerce and Data Masons offer unmatched trading partner and
system expertise for customers using Microsoft solutions," said
Archie Black, President and CEO of SPS Commerce. "Combined, we have
numerous partnerships in the Microsoft community that will extend
SPS Commerce’s leadership in this market.”
“Data Masons is thrilled to join the SPS Commerce retail
network," said Glenn McPeak, CEO of Data Masons. “We have worked
closely with SPS Commerce since 2011 to serve customers in the
Microsoft market and we share a vision of providing the
easiest-to-use, most automated EDI solutions that help suppliers
optimize efficiency when transacting with their trading
partners.”
As part of the SPS Commerce community, Data Masons customers
will have access to the SPS Commerce global retail network, which
includes more than 90,000 trading partners in over 80 countries,
and expanded capabilities for connecting with global supply chain
partners.
Acquisition Details
Under the terms of the acquisition agreement, SPS Commerce
acquired all equity interests of Data Masons for approximately $100
million in cash. Data Masons is headquartered in Sarasota,
Florida.
SPS Commerce anticipates the acquisition will have a nominal
impact to fourth quarter and full year 2020 expected financial
results.
For fiscal year 2021, the company expects the acquisition will
add approximately $20 million in revenue and approximately $3
million in adjusted EBITDA. This includes the estimated impact of
approximately $2 million of the deferred revenue adjustment related
to purchase accounting.
The company also expects the acquisition to contribute
approximately $5 million to Adjusted EBITDA in fiscal year
2022.
Additional details, including the amortization expense
associated with the acquisition, will be provided when the company
reports fourth quarter and fiscal 2020 results in February of
2021.
Conference Call
SPS Commerce will host a conference call today at 7:30 a.m. CT
(8:30 a.m. ET). To access the call, please dial (877) 312-7508, or
outside the U.S. (253) 237-1184, with Conference ID # 7099364 at
least five minutes prior to the 7:30 a.m. CT start time. 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.
About SPS Commerce
SPS Commerce is the world’s leading retail network, connecting
trading partners around the globe to optimize supply chain
operations for all retail partners. We support data-driven
partnerships with innovative cloud technology, customer-obsessed
service and accessible experts so our customers can focus on what
they do best. To date, more than 90,000 companies in retail,
distribution, grocery and e-commerce have chosen SPS as their
retail network. SPS has achieved 79 consecutive quarters of revenue
growth and is headquartered in Minneapolis. For additional
information, contact SPS at 866-245-8100 or visit
www.spscommerce.com.
SPS COMMERCE, SPS, SPS logo, RETAIL UNIVERSE, 1=INFINITY logo,
AS THE NETWORK GROWS, SO DOES YOUR OPPORTUNITY, INFINITE RETAIL
POWER, RETAIL UNIVERSE are marks of SPS Commerce, Inc. and
Registered in the U.S. Patent and Trademark Office. RSX,
IN:FLUENCE, and others are further marks of SPS Commerce, Inc.
These marks may be registered or otherwise protected in other
countries.
Use of Non-GAAP Financial Measures
To supplement its financial statements, SPS
Commerce also provides investors with Adjusted EBITDA, which
is a non-GAAP financial measure. SPS Commerce believes
that this non-GAAP measure provides useful information to
management and investors regarding certain financial and business
trends relating to its financial condition and results of
operations. SPS Commerce's management uses this non-GAAP
measure to compare the company's performance to that of prior
periods for trend analyses and planning purposes. It uses Adjusted
EBITDA for purposes of determining executive and senior management
incentive compensation. This measure is are also presented to the
company's board of directors.
Adjusted EBITDA consists of net income adjusted for depreciation
and amortization, investment income (interest income/expense,
realized investments gain/loss excluding realized gain/loss from
foreign currency on investments), income tax expense, stock-based
compensation expense, realized gain/loss from foreign currency on
cash and investments held, and other adjustments as necessary for a
fair presentation. SPS Commerce uses Adjusted EBITDA as a
measure of operating performance because it assists the company in
comparing performance on a consistent basis, as it removes from
operating results the impact of the company's capital
structure. SPS Commerce believes Adjusted EBITDA is
useful to an investor in evaluating the company's operating
performance because it is widely used to measure a company's
operating performance without regard to items such as depreciation
and amortization, which can vary depending upon accounting methods
and the book value of assets, and to present a meaningful measure
of corporate performance exclusive of the company's capital
structure and the method by which assets were acquired.
This non-GAAP measure should not be considered a substitute for,
or superior to, financial measures calculated in accordance with
generally accepted accounting principles in the United States.
This non-GAAP financial measure excludes significant expenses and
income that are required by GAAP to be recorded in the company's
financial statements and are subject to inherent limitations.
Forward-Looking Statements
This press release contains forward-looking statements,
including information about management's view of SPS
Commerce's future expectations, plans and prospects, including
our views regarding future execution within our business, the
opportunity we see in the retail supply chain world, our
positioning for the future, our performance for the fourth quarter
and full year of 2020, and fiscal years 2021 and 2022, and any
statements about the future effect of the COVID-19 pandemic on our
business, customers or the global economy and our business
prospects, all of which fall within the safe harbor provisions
under The Private Securities Litigation Reform Act of 1995. These
statements involve known and unknown risks, uncertainties and other
factors which may cause the results of SPS Commerce to be
materially different than those expressed or implied in such
statements. Certain of these risk factors and others are included
in documents SPS Commerce files with the Securities
and Exchange Commission, including but not limited to, SPS
Commerce's Annual Report on Form 10-K for the year
ended December 31, 2019, as well as subsequent reports filed
with the Securities and Exchange Commission. Other unknown or
unpredictable factors also could have material adverse effects
on SPS Commerce's future results. The forward-looking
statements included in this press release are made only as of the
date hereof. SPS Commerce cannot guarantee future
results, levels of activity, performance or achievements.
Accordingly, you should not place undue reliance on these
forward-looking statements. Finally, SPS
Commerce expressly disclaims any intent or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise.
SPS-F
Contact:
Investor RelationsThe Blueshirt GroupIrmina BlaszczykLisa
LaukkanenSPSC@blueshirtgroup.com415-217-4962
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