Minneapolis-based SPS Commerce has acquired a longtime software partner for $100 million in cash for its largest acquisition.
SPS has added Data Masons, an Electronic Data Interchange (EDI) software company based in Sarasota, Fla., that SPS has worked and competed with since 2011.
"We are excited about the acquisition of Data Masons. Together, SPS Commerce and Data Masons offer unmatched trading partner and system expertise for customers using Microsoft solutions," Archie Black, the president and chief executive of SPS Commerce, said in a Thursday statement. "Combined, we have numerous partnerships in the Microsoft community that will extend SPS Commerce's leadership in this market."
The addition of Data Masons is expected to add approximately 450 new customers contributing $20 million in revenue in fiscal 2021. The deal is also expected to contribute $3 million in adjusted earnings in fiscal 2021 and $5 million more the following fiscal year. SPS Commerce reported 2019 earnings of $33.7 million on revenue of $279.1 million.
Data Masons' customers include consumer goods, industrial and distribution businesses and resellers using Microsoft solutions.
"Data Masons is thrilled to join the SPS Commerce retail network," said Glenn McPeak, chief executive of Data Masons. "We share a vision of providing the easiest-to-use, most automated EDI solutions that help suppliers optimize efficiency when transacting with their trading partners."
"We believe we have a large global opportunity in front of us and this acquisition further extends the power of our retail community," Black said on a conference call announcing the deal.
Black told analysts on the call that the deal was the largest SPS Commerce has done as a percentage of revenue for the company and an indication they'd continue to look for more deals this size and smaller.
Shares of SPS Commerce closed Friday at $104.63 per share, up $2.67 per share. Shares of SPS are up more than 89% year-to-date.
Patrick Kennedy • 612-673-7926