SPS Commerce Acquires Carbon6 for $210 Million Deal

SPS Commerce announces acquisition of Carbon6 for $210 million. This deal is expected to add approximately $7 million in revenue in Q1 and $40 million in fiscal year 2025, potentially benefiting stock prices positively.

Date: 03-01-2025

AI Rating: 7

Transaction Overview
SPS Commerce, Inc. (SPSC) has disclosed its intent to acquire Carbon6 Technologies, Inc. for approximately $210 million, with 40% of the purchase price being settled in SPS Commerce stock. This strategic move aims to enhance SPS Commerce's product offerings, particularly for Amazon sellers.

Revenue Growth
The potential addition of revenue is notably beneficial for SPS Commerce. Looking towards the first quarter, the deal is projected to contribute around $7 million in revenue. More significantly, for fiscal year 2025, the forecast indicates an impressive revenue increase of about $40 million. This robust growth could positively influence investor sentiment and boost stock prices.

Adjusted EBITDA
The company has also provided insight into its expectations regarding Adjusted EBITDA. For the initial quarter following the acquisition, as they anticipate breakeven in Adjusted EBITDA, and for fiscal year 2025, it is expected to increase by approximately $5.5 million. While this does not indicate immediate profitability, it suggests a path toward enhancing overall financial performance in the future.

This acquisition likely reflects positively on SPS Commerce's strategic direction and growth potential, serving to better equip the company in addressing invoice deduction disputes for Amazon sellers.

Stocks: SPSC