MINNEAPOLIS, July 20. 10, 2022 (GLOBE NEWSWIRE) — SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail cloud services, today announced the acquisition of GCommerce, a leading EDI provider to the retail industry. automotive aftermarket.
“We are delighted with the acquisition of GCommerce, a software solutions provider known for its expertise in the automotive aftermarket industry,” said Archie Black, CEO of SPS Commerce. “We are thrilled to welcome GCommerce employees and customers to the SPS Commerce community, and I look forward to capitalizing on our shared passion for innovation and focusing on a great customer experience.
“GCommerce is thrilled to join SPS Commerce, which marks the next phase of 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 business partners work better together through people, process and innovation.
As members of the SPS Commerce community, GCommerce customers will have access to the largest trading community in the industry, which includes more than 105,000 trading partners in over 80 countries.
Under the terms of the agreement and merger plan, SPS Commerce acquired GCommerce for approximately $45 million in cash.
For the third quarter of 2022, SPS Commerce expects the acquisition to add approximately $1 million in revenue and expects Adjusted EBITDA to be negatively impacted by approximately $300,000. For fiscal 2022, the Company expects the acquisition to 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 generate approximately $7 million in revenue and approximately $2.5 million in adjusted EBITDA in fiscal 2023.
The Company will provide consolidated guidance for the third quarter of 2022 and a full-year 2022 outlook update 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 worldwide to optimize supply chain operations for all retail partners. We support data-driven partnerships with innovative cloud technology, customer-centric service, and accessible experts so our customers can focus on what they do best. To date, more than 105,000 retail, distribution, grocery and e-commerce companies have chosen SPS as their retail network. SPS has achieved 85 consecutive quarters of revenue growth and is headquartered in Minneapolis. For more information, contact SPS at 866-245-8100 or visit www.spscommerce.com.
SPS COMMERCE, SPS, the SPS logo, the 1=INFINITY logo, AS the network grows, so does your opportunity, INFINITE RETAIL POWER, MASTERING THE RETAIL GAME and RSX are trademarks of SPS Commerce, Inc. and registered with the US Patent and Trademark Office. IN:FLUENCE and others are other trademarks 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 management uses this non-GAAP measure to compare the company’s performance to prior periods for trend analysis and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior executive incentive compensation.
Adjusted EBITDA consists of net income adjusted for income tax expense, amortization expense, stock-based compensation expense, foreign currency realized gain or loss on cash and investments held, investment income or loss and other adjustments necessary for fair presentation. .
SPS Commerce uses Adjusted EBITDA as a measure of operating performance because it helps the company compare performance on a consistent basis, as it removes the impact of the company’s capital structure from operating results. SPS Commerce believes that Adjusted EBITDA is useful for an investor to assess the operating performance of the business as it is widely used to measure the operating performance of a business without considering items such as depreciation and amortization , which may vary depending on the accounting methods and the book value of the assets. , and to present a meaningful measure of business performance excluding the capital structure of the business 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 United States generally accepted accounting principles. This non-GAAP financial measure excludes significant expenses and revenues that are required to be recorded in the Company’s financial statements under GAAP and are subject to inherent limitations.
This press release contains forward-looking statements, including information about management’s views on SPS Commerce’s future expectations, plans and prospects, including our views regarding future performance 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 of 2023, under the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that could cause SPS Commerce’s results to be materially impaired. different from those expressed or implied by such statements. Some of these and other risk factors are included in SPS Commerce’s filings with the Securities and Exchange Commission, including, but not limited to, SPS Commerce’s Annual Report on Form 10-K for the financial year ended December 31, 2021, as well as subsequent reports. filed with the Securities and Exchange Commission. Other unknown or unpredictable factors could also materially adversely affect the future results of SPS Commerce. The forward-looking statements included in this press release speak 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 intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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