Peak Technologies and SCS merge to join forces in automatic ID and data capture sector
Private equity-backed firms have acquired a combined 21 logistics tech providers since 2020.
The private equity firm Sole Source Capital is merging two of its portfolio companies in the automatic identification and data capture (AIDC) sector, saying that the combination of Peak Technologies and Supply Chain Services (SCS) creates a full-service solution provider in a fragmented market.
The combined company, which will operate under the Peak Technologies name, will be headquartered in Littleton, Massachusetts. Peak Technologies CEO Tony Rivers will lead the combined company, and SCS CEO Dave Green will become executive chairman. Terms of the deal were not disclosed.
The new company aims to be an end-to-end provider of AIDC solutions that enable supply chain automation, answering a rising demand for solutions amid increasing technological, labor market, and supply chain complexity, Sole Source said.
One way it plans to reach that goal is by combining Peak Technologies’ existing focus on large, enterprise customers with SCS’ focus on small and medium-sized businesses. Another way is through increased scale; Peak Technologies says it will become the industry’s largest provider of end-to-end solutions that modernize the factory, optimize the warehouse, revolutionize the retail experience, and reimagine field services and last mile delivery.
The move is the latest step by Dallas-based Sole Source to consolidate the AIDC marketplace, following years of mergers and acquisitions conducted by those two portfolio firms.
Just last month, Peak Technologies acquired Siena Analytics, a Franklin, Massachusetts-based provider of supply chain and logistics analytics software and artificial intelligence solutions. That deal marked Sole Source Capital’s 16th investment in the AIDC industry, and the eighth add-on acquisition for Peak Technologies since Sole Source acquired the company in 2021.
And likewise in January, SCS acquired Access POS, an Eagan, Minnesota-based provider of AIDC hardware and repair & maintenance services to the warehouse logistics, retail, and grocery end markets. That purchase marked Sole Source’s fifth add-on transaction for SCS since acquiring the firm in 2020.
Peak Technologies and Supply Chain Services announce merger agreement. Combined company will create leading systems integrator in AIDC market. Read the full press release here: https://t.co/oTHV6Njf1I
— Peak Technologies (@PeakTechNA) August 3, 2022