SPS Commerce Acquires ToolBox Solutions
SPS Commerce, Inc., a provider of cloud-based supply chain management solutions for the retail industry, announces the acquisition of ToolBox Solutions, a provider of point-of-sale analytics and category management services to retailers and consumer packaged goods suppliers in North America. The acquisition is expected to expand the SPS Commerce retail network, building on its current network of more than 60,000 organizations in 60 countries, and strengthen its analytics offerings.
ToolBox Solutions has established relationships with many retailers and CPG suppliers in the convenience, grocery and drug store segments. ToolBox Solutions employees will continue to be based in Toronto.
As part of a broad retail network, ToolBox Solutions' customers will be able to take advantage of a suite of solutions that allow them to efficiently integrate and collaborate with their trading partners.
Under the terms of the acquisition agreement, SPS Commerce acquired all of the shares of ToolBox Solutions for approximately $18.4 million in cash and $4.5 million in stock which represents approximately 65,000 shares. This amount includes $1.1 million of stock that is subject to an earn-out and has not yet been issued. ToolBox Solutions is headquartered in Toronto.
For the first quarter of 2016, SPS Commerce anticipates the acquisition will add approximately $1.45 million of revenue and expects Adjusted EBITDA to be negatively impacted by approximately $300,000. For the first quarter, the company expects approximately $350,000 of amortization expense associated with the acquisition.
For fiscal 2016, the company expects the acquisition will add approximately $6 million of revenue. The company also anticipates the acquisition to negatively impact Adjusted EBITDA by approximately $800,000 and expects the acquisition to be accretive to Adjusted EBITDA starting in the first quarter of 2017. For the full year 2016, the company expects approximately $1.4 million of amortization expense associated with the acquisition.
The company will provide consolidated 2016 guidance in its fourth quarter and full year 2015 financial results press release anticipated to be issued on February 3, 2016.
ToolBox Solutions has established relationships with many retailers and CPG suppliers in the convenience, grocery and drug store segments. ToolBox Solutions employees will continue to be based in Toronto.
As part of a broad retail network, ToolBox Solutions' customers will be able to take advantage of a suite of solutions that allow them to efficiently integrate and collaborate with their trading partners.
Under the terms of the acquisition agreement, SPS Commerce acquired all of the shares of ToolBox Solutions for approximately $18.4 million in cash and $4.5 million in stock which represents approximately 65,000 shares. This amount includes $1.1 million of stock that is subject to an earn-out and has not yet been issued. ToolBox Solutions is headquartered in Toronto.
For the first quarter of 2016, SPS Commerce anticipates the acquisition will add approximately $1.45 million of revenue and expects Adjusted EBITDA to be negatively impacted by approximately $300,000. For the first quarter, the company expects approximately $350,000 of amortization expense associated with the acquisition.
For fiscal 2016, the company expects the acquisition will add approximately $6 million of revenue. The company also anticipates the acquisition to negatively impact Adjusted EBITDA by approximately $800,000 and expects the acquisition to be accretive to Adjusted EBITDA starting in the first quarter of 2017. For the full year 2016, the company expects approximately $1.4 million of amortization expense associated with the acquisition.
The company will provide consolidated 2016 guidance in its fourth quarter and full year 2015 financial results press release anticipated to be issued on February 3, 2016.