SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail cloud
services, today 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.
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.
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 105,000 companies in retail,
distribution, grocery and e-commerce have chosen SPS as their
retail network. SPS has achieved 85 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, 1=INFINITY logo, AS THE NETWORK
GROWS, SO DOES YOUR OPPORTUNITY, INFINITE RETAIL POWER, MASTERING
THE RETAIL GAME and RSX are marks of SPS Commerce,
Inc. and Registered in the U.S. Patent and Trademark
Office. 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, our board of directors, 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. Adjusted
EBITDA is also used for purposes of determining executive and
senior management incentive compensation.
Adjusted EBITDA consists of net income adjusted for income tax
expense, depreciation and amortization expense, stock-based
compensation expense, realized gain or loss from foreign currency
on cash and investments held, investment income or loss, 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, and our
performance for the third quarter and full year of 2022 and full
year 2023, 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, 2021, 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
SPS Commerce (NASDAQ:SPSC)
Historical Stock Chart
From Mar 2024 to Apr 2024
SPS Commerce (NASDAQ:SPSC)
Historical Stock Chart
From Apr 2023 to Apr 2024