Speed Commerce Inc. (Nasdaq: SPDC) has acquired Fifth Gear, an e-commerce provider, for $55 million in cash.
Fifth Gear provides order management, fulfillment and customer care services. The company's offerings are used by Burger King, Lens.com, Smithsonian Institute, Zeeberry.com and other companies.
Speed Commerce, headquartered in Dallas, provides omnichannel e-commerce services. The company says the acquisition will add fulfillment services and clients. "The purchase of Fifth Gear provides meaningful scale and value to Speed Commerce on all levels," says Richard Willis, CEO.
The buyer financed the deal and refinanced its existing term loan with a new $100 million credit facility led by Garrison Capital. Stifel was Speed Commerce's financial adviser for the credit facility. Lake Street Capital Markets was the buyer's financial adviser for the deal.
As retailers and other businesses rely more heavily on e-commerce for sales, investors and other buyers are building up companies to provide e-commerce services. In one recent transaction, Siris Capital Group agreed to pay $840 million for e-commerce services provider Digital River (Nasdaq: DRIV) in October.
For more on the trend, see Mergers & Acquisitions December cover story, Retail Reboot: Investors Snatch Up E-Commerce Services, and video interview, As E-Commerce Disrupts Retail, Savvy Investors See Opportunities.