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Secures $35mn credit facility to support continued growth of e-commerce business
Speed Commerce, Inc. (Nasdaq:SPDC), a vertically integrated, omni-channel platform of e-commerce services, has completed the asset sale of its legacy distribution business segment to WYNIT Distribution, LLC, a leading national wholesale distributor of products from the top national brands in a number of industries.
The divestiture completes the company’s transformation into a pure-play e-commerce services provider for some of the world’s leading brands. Speed Commerce has used the proceeds from the sale to pay down its line of credit and support the continued growth of its e-commerce business.
“We can now fully allocate our resources toward our higher growth and higher margin e-commerce business,” noted Richard Willis, president and CEO of Speed Commerce. “In fact, the divestiture allows us to significantly improve our margins, reduce overhead and the seasonal fluctuations of working capital, and brings together our entire organization around a common vision and purpose.”
“For our clients,” continued Willis, “this means they can now better leverage our omni-channel capabilities to unite an effective digital commerce strategy with their traditional retail channels and create the ultimate branded shopping experience for their customers.”
Craig-Hallum Capital Group served as investment banking counsel to Speed Commerce for the divestiture.
New Term Loan Facility:
Speed Commerce has secured through Garrison Capital a $35 million, 60-month term loan facility, with up to an additional $15 million available. This term loan replaces the company’s asset-based revolving credit facility with Wells Fargo Capital Finance.
“Over the past two and a half years, we have dedicated considerable resources to bring the company to where it is today,” said Willis. “We now have the best people, solid working capital and state-of-the art infrastructure to drive double-digit growth in fiscal 2015 and beyond.”
About Speed Commerce:
Speed Commerce, Inc. (Nasdaq:SPDC) is a single-source provider of e-commerce service solutions to leading retailers and manufacturers. The company’s omni-channel capabilities unite a digital commerce strategy with traditional retail channels, creating the ultimate branded shopping experience. Services include e-commerce platform development; hosting, managed and marketing services; order and inventory management; pick, pack & ship; returns processing; and 24/7 customer care.
