Speed Commerce, Inc. acquired assets of Fifth Gear, LLC from a group of sellers for $74.5 million.
November 23, 2014 at 11:00 pm EST
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Speed Commerce, Inc. (NasdaqGM:SPDC) acquired assets of Fifth Gear, LLC from a group of sellers for $74.5 million on November 21, 2014. Speed Commerce will also make an additional earnout payment of maximum 7 million shares. Group of seller includes Lexton Group, L.L.C., Therese Langsenkamp, Jack Alexander, Jan Alexander, Matthew J. Smith, Robert L. Richardson Jr., David L. Hecht, Martha S. Moore, Matthew L. Konkle, Donald J.B. Van der Wiel and Jeffrey Dahltorp. Speed Commerce financed the acquisition and refinanced its existing term loan facility with a new $100 million credit facility led by Garrison Capital. For the 12 months ended September 30, 2014, Fifth Gear's net revenue exceeded $50 million.
Fifth Gear team will move to Speed Commerce. Speed Commerce anticipates that the acquisition will become accretive to earnings during fiscal 2016. Lake Street Capital Markets, LLC acted as a financial advisor to Speed Commerce in the transaction. Stifel acted as exclusive financial advisor in connection with this credit facility. Cody Slach of Liolios Group, Inc. acted as the PR advisor for Speed Commerce, Inc. Scott J. Dongoske of Winthrop & Weinstine, P.A. acted as legal advisor to Speed Commerce, Inc. Steven K. Humke of Ice Miller LLP acted as legal advisor to sellers. G2 Capital Advisors, LLC acted as exclusive financial advisor for Fifth Gear.
Speed Commerce, Inc. (NasdaqGM:SPDC) completed the acquisition of assets of Fifth Gear, LLC on November 24, 2014.
Speed Commerce, Inc. is a single-source provider of omnichannel customer experience solutions and technology for ecommerce retailers and manufacturers. The Company specializes in ecommerce order fulfillment and contact center operations, assisting ecommerce retailers. Its cloud-based fulfillment platform for order and inventory management features integration with ecommerce platforms, and automatic order importing from online marketplaces, including Amazon, Magento, and Shopify. The Company offers a range of solutions, such as e-commerce customer service, fulfillment and warehousing, and client services. Its e-commerce customer services include inbound and outbound telephone support services, order processing, upselling, and cross-selling, email inquiries, outbound marketing campaigns, database scrubbing, and market research. Its fulfillment and warehousing solutions include receiving, picking and packing, shipping, inventory management, returns management, and cross-docking.
SPEED COMMERCE, INC. 