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TECSYS acquires OrderDynamics

Deal will expand omni-channel distribution capabilities for e-commerce companies.

By ·
{scmr_abstract}
By ·

TECSYS, an supply chain management software company, today announced its acquisition of OrderDynamics Corporation, an out-of-the-box distributed order management software based in Richmond Hill, Ontario. In the age of omnichannel fulfillment and heightened retailer and consumer expectations, OrderDynamics has excelled at providing intuitive technology that simplifies the retail supply chain. OrderDynamics’ impressive, best-of-breed solutions have achieved notable traction in the industry and will complement the functionality of TECSYS’ existing Supply Chain Management suite. The combination gives 3PL companies and retailers, including brand managers, new pathways to succeed in today’s competitive environment.

“We’re excited to welcome OrderDynamics to the TECSYS family,” said Peter Brereton, President and CEO of TECSYS. “They will be a highly valued part of our team with their depth of expertise in the B2C retail domain. The powerful combination of our two companies will extend our reach into this fast-moving space and capitalize on our existing footprint in the key markets of North America, Europe, and Australia.”

This acquisition is timely as supply chains are becoming more agile and vertically integrated, with companies able to scale down to the consumer order level. Meeting consumer demands—which typically include expedited shipments and 100 percent fulfillment rates—requires a high level of supply chain technology flexibility. The best-of-breed OrderDynamics solution enables retail merchants and brand managers to optimize inbound business-to-consumer (B2C) order channels, increasing retail sales, reducing operating costs, and improving shopper satisfaction in the process.

“I’m thrilled at what lies ahead for OrderDynamics as part of TECSYS,” said Nick McLean, CEO of OrderDynamics. “We know our employees now have a wonderful new home, one with a warm culture that shares our dedication to helping life-long customers succeed.”

The addition of OrderDynamics technology to the TECSYS suite also gives 3PL companies new opportunities to expand their current TECSYS distribution platform with often-requested functionality. In particular, 3PL companies are increasingly required to provide distributed order management and dynamic e-fulfillment capabilities to win new retail business.

TECSYS purchased 100% of the shares and assumed outstanding debt of OrderDynamics for an aggregate purchase price of $13,375,000, subject to adjustment. TECSYS funded the purchase price with existing cash. With OrderDynamics forecast revenue of $7 million representing 30% year on year growth for their fiscal year ending March 31, 2019 and negative EBITDA (a non-GAAP measure) of $2 million, TECSYS expects a positive impact on combined revenue growth and short term negative impact on combined EBITDA.


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