SPS Commerce to Acquire Carbon6 Technologies for $210M
Deal News | Jan 02, 2025 | Globenewswire
SPS Commerce, a leader in retail supply chain cloud services, has announced its agreement to acquire Carbon6 Technologies. The acquisition aims to enhance SPS Commerce's capabilities in supporting Amazon sellers by incorporating Carbon6's specialized tools, such as ChargeGuard and Seller Investigators, into their portfolio. These tools are designed to assist both first-party and third-party suppliers in managing revenue recovery on Amazon's platform. The transaction, subject to regulatory approvals, will be valued at approximately $210 million, with SPS Commerce stock making up 40% of the purchase price. SPS Commerce expects this acquisition to significantly contribute to its revenue and adjusted EBITDA for the fiscal year 2025. The move follows the earlier acquisition of SupplyPike, strengthening SPS Commerce's position as a market leader in invoice deduction management. A conference call to discuss details was scheduled for the announcement day.
Sectors
- Retail Supply Chain Technology
- E-commerce Support Services
- Invoice Deduction Management
Geography
- United States – Both SPS Commerce and Carbon6 Technologies are based in the United States. The geographic focus on the U.S. is relevant as a significant market for supply chain and e-commerce solutions.
Industry
- Retail Supply Chain Technology – This industry involves the development and provision of technology solutions aimed at optimizing supply chain operations in the retail sector. SPS Commerce is a key player in this industry, offering cloud-based services that connect various retail partners.
- E-commerce Support Services – This sector involves software and service solutions geared towards supporting e-commerce platforms and sellers. Carbon6 Technologies provides specialized tools for Amazon sellers, making it relevant to this classification.
- Invoice Deduction Management – This sector involves tools and services to manage invoice deductions, helping companies recover lost revenues and improve trading relationships. The acquisition of Carbon6 by SPS Commerce enhances their offerings in this sector.
Financials
- 210 million – Total purchase price for the acquisition of Carbon6 by SPS Commerce, subject to purchase price adjustments.
- 40% – Portion of the purchase price to be paid in SPS Commerce stock.
- 7.0 million – Expected revenue addition for the first quarter of 2025 from the acquisition.
- 40.0 million – Projected revenue addition for the fiscal year 2025 from the acquisition.
- 5.5 million – Expected increase in Adjusted EBITDA for fiscal year 2025 due to the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| SPS Commerce | Acquirer | Company | A global leader in retail supply chain cloud services, based in Minneapolis, seeking to enhance its product offerings and market leadership through strategic acquisitions. |
| Carbon6 Technologies | Target Company | Company | A provider of software solutions aimed at helping Amazon sellers optimize revenue recovery and manage supply chain processes. |
| SupplyPike | Previous Acquisition | Company | A company acquired by SPS Commerce, known for its SaaS solution supporting invoice deduction management for Walmart suppliers. |
| Jamie Thingelstad | Chief Technology Officer | Person | CTO of SPS Commerce, highlighting the technological alignment and benefits of the acquisition. |
| Chad Collins | Chief Executive Officer | Person | CEO of SPS Commerce, emphasizing the company's strategic direction in invoice deduction management. |
| Kazi Ahmed | Co-Founder and CEO | Person | Co-Founder and CEO of Carbon6 Technologies, expressing enthusiasm for the acquisition. |
| Justin Cobb | Co-Founder and Chairman | Person | Co-Founder and Chairman of Carbon6 Technologies, highlighting the strategic fit with SPS Commerce. |