SPS Commerce to strengthen Amazon supply chain tools with $210m Carbon6 acquisition

SPS Commerce, Inc., a leader in cloud-based retail supply chain solutions, has announced a definitive agreement to acquire Carbon6 Technologies for $210 million. The deal, comprising a mix of cash and SPS Commerce stock, signals the company’s intent to expand its services portfolio, particularly for Amazon sellers, by enhancing tools that streamline revenue recovery and supply chain efficiency.

The acquisition, pending regulatory approval, will integrate Carbon6’s specialized solutions into SPS Commerce’s expansive retail network. Carbon6 provides unique tools such as ChargeGuard, which automates invoice deduction dispute resolution for Amazon first-party sellers, and Seller Investigators, a platform that recovers lost revenue from fulfillment errors for third-party sellers.

A Major Step In Retail Network Optimization

SPS Commerce’s move to acquire Carbon6 is driven by its ongoing efforts to strengthen its position as a leader in retail network optimization and to address the increasingly complex needs of suppliers selling on global platforms like Amazon. With over 120,000 companies already part of its network, SPS Commerce connects suppliers, distributors, and retailers to streamline operations and improve trading relationships.

Jamie Thingelstad, Chief Technology Officer of SPS Commerce, highlighted the strategic importance of Carbon6’s solutions, stating that they enhance suppliers’ ability to manage deductions and disputes efficiently. Leveraging data from SPS Commerce’s retail network, these tools are expected to minimize resolution times and prevent future errors.

Financial Gains And Market Expansion

The transaction, valued at $210 million, will see approximately 40% of the purchase price paid in SPS Commerce stock. The company anticipates the acquisition will contribute $7 million in revenue during the first quarter of 2025 and approximately $40 million to its annual revenue. Additionally, SPS expects the deal to add $5.5 million in Adjusted EBITDA for the fiscal year, demonstrating the acquisition’s financial viability.

SPS Commerce has consistently delivered growth, achieving 95 consecutive quarters of revenue increases. CEO Chad Collins remarked that the addition of Carbon6 not only strengthens the company’s revenue recovery tools but also consolidates its leadership in the emerging category of invoice deduction management, a critical area for suppliers working with global retail giants like Amazon and Walmart.

Building On A Growing Portfolio

This acquisition follows SPS Commerce’s August 2024 purchase of SupplyPike, a SaaS platform designed to support Walmart suppliers in managing invoice deductions and improving trading relationships. Together, these acquisitions establish SPS Commerce as a key player in the global supply chain solutions market, particularly for suppliers navigating the challenges of large retail ecosystems.

Carbon6’s leadership, including Co-Founders Kazi Ahmed and Justin Cobb, expressed optimism about the merger. They noted that the cultural and operational alignment between the two companies ensures a seamless integration. With a shared vision of simplifying supply chain processes and driving success for suppliers, the combined entity is poised to deliver unparalleled solutions for sellers in both first-party and third-party ecosystems.

Implications For Amazon Sellers

The acquisition is expected to significantly enhance SPS Commerce’s ability to support Amazon sellers. Tools like ChargeGuard and Seller Investigators provide actionable solutions to recover lost revenue and optimize financial performance. By integrating these services, SPS Commerce aims to help suppliers achieve supply chain efficiency and maintain profitability in an increasingly competitive retail environment.

SPS Commerce’s broader network integration ensures that suppliers not only recover revenue but also prevent future losses by streamlining processes with real-time data insights. This approach reinforces the company’s reputation as a trusted partner for businesses across the retail supply chain.

A Forward-Looking Strategy

With e-commerce continuing to dominate global retail, SPS Commerce’s strategic acquisitions underscore its commitment to innovation and customer-centric solutions. The integration of Carbon6’s tools into its network is a pivotal step in enabling suppliers to overcome operational inefficiencies and maximize their revenue potential.

As the retail landscape evolves, SPS Commerce’s investment in companies like Carbon6 and SupplyPike highlights its dedication to delivering transformative solutions tailored to the needs of its vast network of suppliers, retailers, and distributors.