Subscribe to our free, weekly email newsletter!


Logistics technology: SPS Commerce acquires Direct EDI

By Jeff Berman, Group News Editor
May 20, 2011

On-demand supply chain technology provider SPS Commerce recently announced it has acquired Direct EDI, a provider of cloud-based integration technology services.

The purchase price was $10.9 million in cash, according to SPS Executive Vice President and CFO Kim Nelson on a conference call announcing the deal this week.

SPS said that this deal boosts its position as a leading provider of cloud-based supply chain technology and added that “subscribers of SPSCommerce.net and Direct EDI’s services will benefit from expanded operations to support e-commerce and traditional retail supply chains.”

Based in San Diego, Direct EDI is connected to more than 3,000 retailers and thousands of vendors to whom they provide Web-based EDI services focused on e-commerce supply chain connectivity. Its flagship Web-based EDI System allows large enterprises to connect with all supply chain stakeholders and enables small-to-mid-sized enterprises to achieve equal supply chain visibility and connectivity with all their trading partners quickly and without large capital investment, according to its Web site.

Direct EDI has 40 employees and along with its corporate office in San Diego, it has a development center in the Ukraine.

“Since our IPO last year, we have talked about targeting acquisitions to boost our market leadership,” said SPS Commerce President and CEO Archie Black on the conference call. “This strengthens our position as one of the industry’s largest and fastest growing providers of SaaS supply chain solutions.”

Black said the strategic reason for this deal is simple, as Direct EDI is well-known for its leading edge, easy-to-use technology and strong customer focus. And this acquisition allows SPS Commerce to add roughly 1,500 new customers.

“At Direct EDI, we have always believed that our success begins with the success of our customers,” stated Michael Davidovich, Founder and CEO of Direct EDI, in a statement. “I am pleased to announce that we are continuing this commitment by merging our operations with SPS Commerce, a recognized leader in on-demand supply chain solutions and a company that shares our commitment to customer success.”

Click here for more articles on logistics technology.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

With NFL training camps in full swing, it stands to reason that Congress must be replete with football fans, given how it basically has elected to punt on federal transportation funding yet again, with the Senate yesterday signing off on a ten-month bill to keep federal surface transportation funding intact through May 2015 through a nearly $11 billion stopgap measure.

Carload volumes were up 4.3 percent at 306,988, and intermodal volume for the week ending July 26 was up 3.3 percent at 264,809

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Download the newly released research report, "Transportation Management Systems" conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and Logistics Management magazines. Learn what logistic experts are saying about their current supply chain technology infrastructures, how they tackle the transportation component, and revealed the gaps that still need to be filled in order to attain end to-end visibility of a streamlined supply chain.

From cost center to growth center. Get insightful opinions on changes in the marketplace from this independent survey of warehouse personnel. Motorola Solutions examined the current warehousing marketplace in our 2013 Warehouse Vision Report, conducted April-May of 2013.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA