SPS adds to omnichannel toolbox with acquisition

SPS Commerce Inc., a provider of cloud-based retail supply chain management solutions, is recognizing the need for back-end unification of supply chain and store.



SPS has acquired ToolBox Solutions, a Toronto-based provider of POS analytics and category management services to retailers and CPG suppliers in North America.



“In the omnichannel era, retailers and suppliers need rich insights into consumers' purchase behavior, both in store and online,” said Archie Black, CEO of SPS Commerce. “Enabling collaboration and visibility between trading partners around consumer demand trends and inventory is essential in order to drive growth. With the acquisition of ToolBox Solutions, we expand our expertise in POS analytics for both retailers and suppliers. "



Retailers and suppliers can no longer afford to operate siloed supply chains. Connected consumers now expect to be able to easily pull desired items, regardless of where they are located in the back end. By obtaining the capabilities of ToolBox, SPS is making itself a more valuable and complete solution for the omnichannel supply chain.



ToolBox Solutions employees will continue to be based in Toronto. Under the terms of the acquisition agreement, SPS Commerce acquired all of the shares of ToolBox Solutions for approximately $18.4 million in cash and $4.5 million in stock, which represents approximately 65,000 shares. This amount includes $1.1 million of stock that is subject to an earn-out and has not yet been issued.