Delta Apparel Acquires Tech Company Autoscale.ai

Delta Apparel Inc., a provider of activewear and lifestyle apparel products, acquires Dallas-based technology company, Autoscale.ai. The acquisition further leverages Delta’s existing automated product workflow from design to fulfillment.

Delta’s DTG2Go platform offers on-demand, direct-to-garment digital printing and fulfillment. Combined with Autoscale, DTG2Go will provide automated solutions for design creation, art and licensing management, marketing spend, and 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,” explains 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/CEO TK Stohlman continues as president of Autoscale. Syed Aamir Naqib, Autoscale’s chief technology officer, joins 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 million through its existing U.S. credit facility.

Merrill continues, “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.”

The news comes after Delta Apparel and Autoscale announced a strategic partnership in April 2021.