SPS Commerce makes $100 million acquisition of EDI vendor Data Masons

Retail cloud services vendor SPS Commerce is acquiring EDI vendor Data Masons, the company announced on Thursday.

SPS will pay $100 million cash for full ownership of the Florida-based EDI vendor. According to the SPS Commerce announcement, Data Masons will deliver $20 million in revenue and $3 million in adjusted EBITDA in fiscal 2021, and $5 million in EBITDA in 2022.

SPS Commerce and Data Masons both have deep roots in the Microsoft ecosystem. SPS Commerce offers a retail network that connects supply chain trading partners, including EDI capabilities. They support over 90,000 customers, according to a recent presentation. Data Masons has focused on EDI and XML solutions and operates frequently in the Dynamics 365 and Dynamics ERP channel with their Vantage Point EDI solution. They have over 1,000 customers in North America.

In an October investor presentation SPS Commerce estimated it would deliver $310 million in revenue and $35 million in EBITDA.

“Data Masons is thrilled to join the SPS Commerce retail network," said Glenn McPeak, CEO of Data Masons. “We have worked closely with SPS Commerce since 2011 to serve customers in the Microsoft market and we share a vision of providing the easiest-to-use, most automated EDI solutions that help suppliers optimize efficiency when transacting with their trading partners.”