SPS Commerce Buys New Jersey Firm for $26.3M
Minneapolis-based supply-chain management firm SPS Commerce said Tuesday that it has acquired New Jersey-based Edifice Information Management.
SPS paid $26.3 million in cash for Edifice, which provides cloud-based supply-chain performance solutions. The acquisition, which will add about 500 customers to SPS’ client base, was completed on Tuesday.
SPS Commerce provides on-demand supply-chain management solutions, including supply-chain integration, e-commerce services, item management, warehouse management, and fulfillment partner integration. It delivers its services over the Internet using a software-as-a-service model, aiming to improve the way that suppliers, retailers, distributors, and other customers manage and fulfill orders.
SPS, which went public in 2010, said that the acquisition expands its point-of-sale (POS) analytic offerings and adds several hundred suppliers to its network.
“Supply-chain collaboration, powered by POS analytics, is driving the next wave of efficiency in the retail supply chain,” SPS CEO Archie Black said in a statement. “With this acquisition, SPS gains Edifice’s expertise in POS analytics, robust business intelligence solutions, and relationships with many of the world’s leading suppliers.”
Edifice will continue to operate from its headquarters in New Jersey and will maintain its sales offices in London and Tokyo.
SPS expects Edifice’s revenue to total between $4 million and $4.4 million in 2012. As such, SPS revised its guidance for the year and expects revenue to total between $75 million and $76 million in 2012—representing growth of 29 percent to 31 percent from its 2011 revenue. Earlier, SPS had projected 2012 revenue in the range of $71 million to $71.6 million.
SPS Commerce is among Minnesota’s 80-largest public companies based on revenue, which totaled $57.9 million in 2011.