One of the more mature local retail service providers that began as a startup in Northwest Arkansas’ supplier community has made the leap internationally.
Shiloh Technologies, was acquired last week by Atlanta-based Software Paradigms International (SPI) in what founder Britt Fogg describes as a strategic play that will give Shiloh a foothold into retail services across the globe.
In terms of startup success, Shiloh is yet another example of a local startup growing its business and ultimately being acquired by larger entity, while still maintaining a local presence.
Shiloh follows in the footsteps of Jay Howard of I.O. Metro and Elise Mitchell Communications, who each sought expansion into a larger fishbowl with the help of bigger fish.
In a recent interview with The City Wire, Fogg said despite Shiloh’s consistent growth since it first opened in 1992, not having an international office has been a competitive disadvantage in trying to capitalize on growing global demand.
Shiloh has made a name for itself securing business from dozens of suppliers like Welch’s, Hillshire Brands, Bic and Coty and providing them with software analytics and technical tools that analyze product demand, track fluctuations in inventory, improve store merchandise execution and evaluate a product’s overall sales performance with various retailers.
Fogg said on Tuesday (Oct. 1) he had been searching for sometime to find the right partner for Shiloh and SPI was a near perfect fit as it focuses on software and services directly for retailers doing business around the globe. SPI does business on five continents and takes pride in having worked, advised and/or partnered with every top-50 retailer on the globe. In addition to its headquarters in Atlanta, SPI has a local presence in Singapore, Australia, Brazil, the United Kingdom and Canada and development centers in India and Nepal.
Fogg said SPI purchased Shiloh outright and is bringing the entire business into a new division within its corporation. Fogg and his crew of 35 will remain in Northwest Arkansas and continue expanding their local office in Rogers.
“We are very excited about our possibilities with SPI,” Fogg said. “This brings together our world-class platform with a company recognized around the world for quality and retail service expertise.”
He made the following promise to his customers: “They will continue to see and talk to the same great people at Shiloh as we continue adding new members to our team to meet the ever growing demand for our products and services.”
Sid Mookerji, CEO of SPI, said the deal is a win-win as it allows both companies to expand their present operations.
“It allows us to extend our product portfolio to provide “point of sale” analytics from retailers to their suppliers. But it also provides Shiloh clients with the opportunity to leverage our global services and products — giving both companies endless opportunities,” Mookerji said.
Neither company disclosed the financial terms of the deal. Fogg said the transaction closed last week.
Shiloh is SPI’s second acquisition in recent months following the July purchase of New Jersey-based IT Resources, a software development firm that specializes in merchandising solutions to the retail industry.
InsideView pegs SPI’s annual sales at roughly $50 million, with some 1,500 on its payroll. Hoovers/Dunn & Bradstreet estimates Shiloh’s annual revenue at $3.2 million with 35 employees.