SPS Commerce buying Netherlands company to expand reach in Europe

SPS has agreed to acquired TIE Kinetix, a Netherlands-based provider of supply chain digitization software.

July 28, 2023 at 1:10PM
SPS Commerce reported quarterly profits that were up 36%. Shown are employees meeting in the “Cloud” room at the company’s Minneapolis headquarters. (Elizabeth Flores, Star Tribune/The Minnesota Star Tribune)

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.

Black is retiring after 21 years from his CEO position and becoming executive chairman. Chad Collins, a former executive of Körber Supply Chain Solutions and HighJump Software, will succeed him.

"Given Chad's leadership and industry experience, I believe he is uniquely qualified to lead SPS through its next chapter of growth and innovation," Black said at the beginning of the quarterly conference call.

SPS Commerce released results after the market closed on Thursday, when the company's shares were down 1.4% to close at $172.63 cents. Year-to-date, SPS shares have been up 34.6%.

about the writer

about the writer

Patrick Kennedy

Reporter

Business reporter Patrick Kennedy covers executive compensation and public companies. He has reported on the Minnesota business community for more than 25 years.

See Moreicon

More from Business

See More
This undated photo provided by General Mills shows a bowl of Trix cereal made with natural colors.

The Golden Valley company will have dye-free cereal and food in schools by next summer and a completely naturally colored portfolio in 2027. Competitor Kraft Heinz made a similar move Tuesday.

card image
card image