Speed Commerce Divests Retail Business, Replaces WFCF Facility
Speed Commerce also noted it 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.
Speed Commerce used the proceeds from the sale to pay down its line of credit and support the continued growth of its e-commerce business. The divestiture completes the company’s transformation into a pure-play e-commerce services provider for some of the world’s leading brands.
“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, 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.”
Speed Commerce is a single-source provider of e-commerce service solutions to leading retailers and manufacturers.