SPS Commerce has acquired the Mapadoc EDI (electronic data interface) division of SWK Technologies for $11.5 million in cash.
Minneapolis-based SPS is a cloud-based supply-chain software provider that works primarily with retailers. It has worked with the Hanover, New Jersey-based Mapadoc for more than a decade, the company said.
Mapadoc assists retailers in managing their information across their enterprise resource planning systems. Essentially, the firm’s technology helps suppliers and distributors automate the paperwork required by large retailers like Amazon for things like shipping, pricing, and inventory levels.
Mapadoc’s customers and approximately 20 employees will join SPS, the company said. Meanwhile, Mapadoc customers will gain access to SPS’s retail trading network, ERP, ecommerce and logistics applications, global supply chain partners, and other ways to enhance their supply chain efficiency, the firm said.
Mark Meller, CEO of SWK Technologies, commented on the news:
“SPS Commerce shares our vision of providing the easiest-to-use, most automated EDI solutions that help suppliers in the Sage and Acumatica markets work better with their trading partners while benefiting from deep ERP integration. We are excited that the product innovation and industry-leading support our customers have come to expect from the MAPADOC team will continue and accelerate as part of a larger organization.”
Meller says the sale of the division gives his company the resources it needs to accelerate its growth plans, centered around the products and services it provides to its SMB customers, enabling their digital transformation.
SPS says it expects the acquisition to contribute approximately $2 million in revenue and approximately $1 million in Adjusted EBITDA in fiscal year 2020.
SWK Technologies, meanwhile, has recently been acquiring Safe Software resellers. The company bought Partners in Technology in January and Information Systems Management Inc. in June 2018.
