GREENVILLE, S.C — June 8, 2021 — Delta Apparel, Inc., a provider of core activewear and lifestyle apparel products, announced today it has acquired Dallas-based technology company, Autoscale.ai, to further leverage its existing proprietary automated product workflow from design to fulfillment.
Delta’s DTG2Go platform is a market leader in the on-demand, direct-to-garment digital print and fulfillment industry, bringing technology and innovation to the supply chain of its customers. Combined with Autoscale, DTG2Go will provide automated solutions for design creation, art & licensing management, and marketing spend, as well as seamless connectivity with various online marketplaces.
“Integrating Autoscale’s innovative technology into our portfolio is a critical part of our strategy to drive enterprise value over the long term by providing an automated, scalable, seamless solution for on-demand, decorated apparel – from design to fulfillment,” said Delta Group President, Deborah H. Merrill. “The acquisition allows us to take full advantage of the Autoscale technology, which should quickly expand beyond its current capabilities, further transforming the on-demand opportunities in today’s e-commerce market.”
Autoscale.ai founder and Chief Executive Officer, TK Stohlman, will continue as President of Autoscale. Syed Aamir Naqib, Autoscale’s Chief Technology Officer, is also joining DTG2Go as Chief Technology Officer, bringing continuity to the leadership, direction and speed of the technological advancements that are anticipated in the near term and beyond.
The transaction was structured with the acquisition purchase price substantially based upon future profits resulting from the Autoscale.ai technology. The Company will fund the initial cash payment of $8.0 million through its existing U.S. credit facility.
Merrill continued, “We expect to quickly launch some new applications utilizing Autoscale technology which should expand the on-demand opportunities for our existing customers and bring new customers to our DTG2Go platform.”
Posted June 8, 2021
Source: Delta Apparel, Inc.