Logistics technology: SPS Commerce acquires Direct EDI

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.”

By ·

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, 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. Contact Jeff Berman

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!

Latest Whitepaper
Lead your organization through the driver shortage and over-the-road regulations.
Potential transportation disruptions are looming as increased over-the-road regulations are set to go into effect in 2017. Experts believe these regulations will further impact the already challenged driver pool as well as reduce driver productivity.
Download Today!
From the January 2017 Issue
Following LM tradition, we start off the New Year with our annual “Rate Outlook” cover story and subsequent Webcast
Moore on Pricing: The other TMS functional options
2017 Rate Outlook: Where are freight transportation rates headed?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Rate Outlook: Where are freight transportation rates headed?
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...

Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....