This week, Speed Commerce Operations Company LLC announced that it has officially been acquired by Garrison Investment Group LP. The $150 million deal the e-commerce fulfillment and technology provider indicated, is one that will help accelerate future growth opportunities.
"The investment and support from Garrison allows Speed Commerce to attack the opportunities provided by the rapidly-growing e-commerce market with a strong balance sheet, a leaner cost structure, a seasoned management team and an unwavering commitment to customer service and operational excellence," Hari Pillai, the new chief executive officer of the organization, stated. "Speed Commerce has a very strong base of world-class customers and, coupled with the company's skilled and experienced workforce and the leverage provided by our sophisticated IT systems, we are in an excellent position to capitalize on the massive opportunity at hand."
The restructuring also included two other additions to the executive team. Jyoti Kapoor, according to the press release, will hold the role of chief operating officer and is well-versed in supply chain management in the technology field. Jochen Vogt has been appointed as the new chief financial officer, also joining the organization with an extensive background of industry-related experience.
In a phone interview with DC Velocity Senior Editor Ben Ames, Pillai explained that this acquisition will allow the company to expand its warehousing footprint and capabilities, as well as add as many as 600 new employees to its team. Currently, Speed Commerce manages its own network of distribution centers and has contract agreements with a number of carriers, including FedEx Corp., DHL Express and UPS Inc. As of right now, the organization is able to provide the majority, or 80 percent, of its U.S.-based clientele with one-day deliveries via truck.
Pillai also added that Speed Commerce plans to distinguish itself from others in the industry, such as online retail titan Amazon.com, by allowing customers to exercise more brand control.