Delta Apparel (asi/49172), a Top 40 supplier in the North American promotional products industry, has acquired Autoscale.ai, a Dallas-based technology company that specializes in automation.

Executives said the deal was structured with the acquisition purchase price substantially based upon future profits resulting from the Autoscale.ai technology. Delta Apparel said it’s funding the initial cash payment of $8 million through its existing U.S. credit facility.

Company leaders said the acquisition will help Delta Apparel even better leverage its existing propriety automated product workflow from design to fulfillment. In particular, Autoscale.ai’s capabilities stand to enhance Delta’s DTG2Go platform, which is an on-demand direct-to-garment digital print and fulfillment solution. DTG2Go will provide automated solutions for design creation, art/licensing management and marketing spend, as well as 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.

TK Stohlman, Autoscale.ai’s founder and CEO, will continue as president of Autoscale.ai. Syed Aamir Naqib, Autoscale.ai’s chief technology officer, is also joining DTG2Go as CTO, bringing what Delta Apparel described in a statement as “continuity to the leadership, direction and speed of the technological advancements that are anticipated in the near term and beyond.”

Headquartered in Greenville, SC, Delta Apparel is the 38^th largest supplier in the promo industry based on reported 2019 North American promotional product revenue of $46.2 million. Counselor’s newest ranking of the industry’s 40 largest suppliers is due out in July 2021.