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Carbon6, a Toronto-based company founded in 2021, provides software tools designed to support Amazon sellers in managing and growing their businesses.

SPS Commerce has announced its plan to acquire Carbon6 Technologies Inc. (Carbon6) in a cash-and-stock transaction valued at $210 million.

SPS Commerce is a Minneapolis-based provider of supply chain solutions. Carbon6 is a Toronto-based company founded in 2021. It provides software tools designed to support Amazon sellers in managing and growing their businesses.

Under the agreement, SPS Commerce will pay 60% of the purchase price in cash. SPS Commerce will pay the remaining 40% in its stock. SPS Commerce expects the Carbon6 acquisition to generate approximately $7 million in revenue in the first quarter of 2025. It also expects it to contribute about $40 million for the full year.

SPS Commerce acquisition of Carbon6

This is SPS Commerce’s second acquisition in six months. In August 2024, the company acquired SupplyPike Inc. for $119 million in cash and $87 million in SPS Commerce stock. SupplyPike provides automated invoice deduction management solutions. The SupplyPike acquisition is projected to add $3 million in revenue for the third quarter of 2024 and $8 million for the year, with $25 million anticipated for 2025.

“Our customers rely on us to help them streamline supply chain operations with retail partners,” said Chad Collins, CEO of SPS Commerce. “The addition of Carbon6 strengthens our capabilities, particularly in supporting marketplace sellers like those on Amazon.”

Carbon6 offers a range of software tools that leverage AI and data to help Amazon sellers improve profitability, drive revenue, and enhance efficiency. These tools include:

  • Inventory management: Tools like SoStocked for inventory forecasting.
  • Listing optimization: Applications to improve product listings.
  • Profit recovery: Tools such as Profit Recovery and ChargeGuard to manage reimbursements and recover funds.
  • Advertising and (pay per click) PPC management: Tools to optimize paid advertising campaigns.
  • Monitoring: AMZAlert for tracking listings and competitors.
  • Seller support: SellerAssist, which provides access to support personnel.
  • Wholesale product sourcing: ScanUnlimited for identifying wholesale opportunities.

The acquisition underscores SPS Commerce’s ongoing efforts to expand its services in the ecommerce sector, particularly for marketplace sellers.

“Carbon6 was founded to simplify success for sellers and suppliers, starting with a focus on Amazon,” says CEO Kazi Ahmed. “With its specialized offerings, augmented by SPS Commerce’s network, we believe the combined company will deliver for first-party and third-party sellers.”

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