SPS Commerce Inc. has acquired a longtime strategic partner for $11.5 million.
The Minneapolis-based company bought the Mapadoc EDI division of Hanover, N.J., firm SWK Technologies Inc.
Mapadoc has been working with SPS Commerce for more than a decade.
“As far as deals go, it was one of the easier to do just because we knew the people so well and they knew us,” said SPS President and Chief Executive Archie Black.
SPS Commerce provides cloud-based supply-chain software primarily for retailers. Mapadoc EDI, which stands for electronic data interface, helps retailers with the flow of information across their enterprise resource planning systems.
“We think we’ll have a better customer experience by all being under one umbrella,” Black said.
He said Mapadoc and some other players have built their businesses to work with SPS Commerce. Mapadoc’s technology helps suppliers and distributors automate the documentation large retailers require for functions such as shipping, pricing and inventory levels.
“SPS Commerce shares our vision of providing the easiest-to-use, most automated EDI solutions that help suppliers in the Sage and Acumatica markets work better,” said Mark Meller, CEO of SWK Technologies, in a news release.
SPS has annual revenue of $240 million and expects adding Mapadoc and its 20 employees to make a nominal addition to its results for the rest of the year but add $2 million in revenue and $1 million in adjusted EBITDA to its results by the end of 2020.
Shares of SPS Commerce closed Tuesday at $48.12, down 2.6%.