SPS Commerce announced plans to acquire TIE Kinetix, a Netherlands-based company that will expand the Minneapolis-based company's reach in Europe.
European countries mandate e-invoicing for certain government reports on taxes. TIE Kinetix's offerings facilitate that record-keeping and help eliminate paper forms from the supply chain.
SPS expects the $71 million deal for TIE Kinetix to be completed in the third quarter and to start contributing to their results in the fourth quarter.
"With the acquisition of TIE Kinetix, SPS Commerce is strengthening its e-invoicing capabilities, while expanding our European presence to serve our growing network with access to international markets." said Archie Black, chief executive of SPS Commerce, in a news release.
Once the deal closes, SPS Commerce expects TIE Kinetix, which has about 100 employees, to start contributing to its results in the fourth quarter and to contribute approximately $16 million in revenue to SPS's 2024 annual results.
SPS also announced its second quarter results on Thursday — recording a 36% increase in profits at $14.7 million, or 39 cents a share. Revenue grew for the 90th straight quarter to $130.4 million, a 19% jump.
Adjusted earnings of 69 cents a share beat analyst expectations.
"SPS is the world's largest cloud retail network, and as we continue to leverage its data and enhance its intelligence, we make joining and operating within the network increasingly more efficient, further expanding our competitive advantage," Black said in the earnings release.
