Australia's Leadtec snapped up in $14.9m SPS Commerce deal

Australian cloud-based supply chain solutions company Leadtec has been snapped up by US-based retail cloud services provider SPS Commerce for $14.9 million.

US-based retail cloud services provider SPS Commerce is shelling out $14.9 million to acquire Australian cloud-based supply chain solutions company Leadtec.

The deal sees SPS Commerce take on all of Leadtec's assets for approximately $12.7 million in cash, and $2.2 million in stock — combining for a total purchase price of $14.9 million.

SPS Commerce said it anticipates that the acquisition will add approximately $750,000 of revenue, and expects Adjusted EBITDA to be negatively impacted by approximately $300,000 for the fourth quarter of 2014.

The Minneapolis-based cloud services company also anticipates a one-time expense of $400,000 in the fourth quarter of 2014 as part of the transaction, and a small increase in share count of approximately 40,000 shares.

President and CEO of SPS Commerce Archie Black said that the acquisition would not only increase the company's international footprint, but also increase its workforce as it takes on Leadtec employees as part of the deal.

"We are pleased to welcome Leadtec's employees and customers to the SPS Commerce community," said Black. "SPS continues to grow its network to span the globe while enabling retailers and suppliers to collaboratively deliver a seamless experience for consumers in today's omni-channel retail marketplace.

"This acquisition strengthens our international presence, adds key retailer relationships to the network and broadens our team of retail and supply chain experts in Australia, New Zealand, and beyond," he said.

Leadtec's employees will continue to be based in Melbourne.

According to SPS Commerce, the Melbourne-based e-business provider claims one of the largest trading partner networks in Australia, possessing relationships with most of the region's largest retail companies, including 7-Eleven Stores, Coles Supermarkets Australia, David Jones, Myer, and Woolworths Supermarket.

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