Supplier Delta Apparel, Inc. (PPAI 188431, S9), headquartered in Greenville, South Carolina, has acquired Dallas, Texas-based technology company, Autoscale.ai, to further leverage its existing proprietary automated product workflow from design to fulfillment.

Delta’s DTG2Go platform offers on-demand, direct-to-garment digital print and fulfillment, bringing technology and innovation to the supply chain of its customers. Combined with Autoscale, DTG2Go will provide automated solutions for design creation, art and licensing management, and marketing spending, 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,” says 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 ecommerce market.”

Autoscale.ai founder and CEO, 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 million through its existing U.S. credit facility.

Merrill adds, “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.”