SPS Commerce Acquires SaaS Platform Traverse Systems For Approximately $25M In Cash And $4.3M In Its Stock
Portfolio Pulse from Benzinga Newsdesk
SPS Commerce has acquired Traverse Systems for around $29.3M, combining cash and stock. The acquisition is expected to add $600,000 in revenue in Q2 2024 but will negatively impact Adjusted EBITDA by $200,000. For the fiscal year 2024, an additional $2.9M in revenue and a breakeven in Adjusted EBITDA are anticipated. By 2025, the acquisition is projected to contribute $5M in revenue and $1.5M in Adjusted EBITDA.
May 09, 2024 | 11:56 am
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POSITIVE IMPACT
SPS Commerce's acquisition of Traverse Systems for $29.3M is expected to increase revenue over the next two years, with a short-term negative impact on Adjusted EBITDA in Q2 2024.
The acquisition of Traverse Systems by SPS Commerce represents a strategic move to enhance its service offerings and expand its revenue base. The initial investment and negative impact on Adjusted EBITDA in Q2 2024 are typical of acquisitions, where upfront costs are offset by long-term gains. The expected increase in revenue in the following years indicates a positive outlook for SPSC, making this acquisition potentially beneficial for its stock price in the medium to long term.
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IMPORTANCE 80
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