Delta Apparel Inc. announced it had acquired Dallas-based technology company, Autoscale.ai, to further leverage its existing proprietary automated product workflow from design to fulfillment.
In late April, Delta Apparel announced that its DTG2Go on-demand direct-to-garment platform had formed a partnership with Autoscale.ai. Combined with Autoscale, DTG2Go will provide automated solutions for design creation, art & licensing management, marketing spend, and connectivity with 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 CEO, TK Stohlman, will continue as president of the business. Syed Aamir Naqib, Autoscale’s chief technology officer, is also joining DTG2Go as chief technology officer.
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.
Photo courtesy Autoscale.ai
