Minneapolis-based IT services and consulting firm SPS Commerce Inc. announced that it has acquired supply chain software startup SupplyPike of Rogers for $206 million.
SPS Commerce (NASDAQ: SPSC) said the deal includes $119 million in cash and $87 million in stock. SupplyPike is expected to add $3 million to SPS Commerce’s third-quarter revenue and $8 million to full-year revenue.
SPS Commerce posted revenue of $153.6 million the second quarter. Full-year guidance issued before the acquisition projected revenue of between $624.2 million and $626 million, up 16% to 17% from 2023.
“With the acquisition of SupplyPike, SPS Commerce now offers an additional way for suppliers to understand and improve their ability to meet their retail customers’ expectations, with automated process monitoring, education, and improvement, and dispute resolution capabilities,” SPS Commerce CEO Chad Collins said in a news release.
SupplyPike, led by founder and CEO Dan Sanker, provides monitoring and management of invoice deductions to recover lost revenue, along with the information needed to improve processes and eliminate deductions in the future. It works with companies including Walmart, Amazon, Target and Kroger. The company has about 120 employees.
Christina Tan, SupplyPike’s chief operations office, told Arkansas Business this year that the company has experienced average annual revenue growth of 140% the past three years. “We have been expanding, and we’ve been crushing revenue goals,” she said. “We are starting the research for expansion in the home-improvement channels.”
SupplyPike spun off from logistics provider CaseStack in 2018 and completed it in 2019. The company then pivoted to a software-as-a-service business strategy, which provided more predictable revenue and allowed for fixed subscription prices.
In 2022, SupplyPike raised $25 million in Series B funding to grow its workforce and invest in research and development.
The company won Arkansas Business of the Year in Category III (56-150 employees) in 2024.
“We believe by combining SupplyPike with SPS Commerce, we are providing an industry-leading knowledgebase of resources to reduce supply chain missteps and strengthen suppliers’ relationships with their customers,” Sanker said.
SPS Commerce posted net income of $18 million in the second quarter, up from $14.7 million a year ago.
“The mission-critical nature of our solutions fuels consistent demand for our product portfolio, and we remain confident in the growth opportunity ahead of us as e-commerce and omnichannel retail continue to grow,” Collins said.
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