Rogers-based SupplyPike Acquired in 6 Million Cash and Stock Deal
SupplyPike, a software as a service (SaaS) company founded by Dan Sanker in December 2017, has been acquired by Minneapolis-based SPS Commerce, a leader in retail supply chain cloud services. The acquisition took place on August 1, 2024, with a value of 6 million, comprising 9 million in cash and million in SPS Commerce stock.
SupplyPike, previously part of Fayetteville-based CaseStack, a logistics and consolidation provider founded by Sanker in 1999, was spun off into a separate company in 2018. Over the past six years, SupplyPike has grown to serve over 500 retail suppliers with its automated software service, which monitors and manages invoice deductions with retailers to recover lost revenue.
SPS Commerce acquired SupplyPike to enhance its ability to support retail suppliers. Chad Collins, CEO of SPS Commerce, emphasized that the acquisition aligns with the company’s other cloud-based supply chain services. SupplyPike’s core customer base includes mid-size suppliers, which Collins believes has significant growth potential. The acquisition is expected to add million to SPS Commerce’s revenue in fiscal year 2024, with estimates of million in revenue growth in fiscal year 2025.
SupplyPike’s automated software service provides ongoing monitoring and management of invoice deductions to help suppliers recover lost revenue. The company’s experts offer retailers the tools to fight invalid deductions, maximize cash flow, and ensure compliance scores are improved. SupplyPike’s team of over 100 experts will join SPS Commerce, with their headquarters moving to Rogers, Arkansas.
Industry consultants view the acquisition as a strategic step forward. Tim McFarland, CEO of Peer Advisory Group, praised the deal as a pure growth play, with no expected negative impact on local jobs. The deal is seen as a significant addition to the retail supply chain ecosystem and a major advancement for suppliers in managing their relationships with retailers more effectively.
Both companies believe the acquisition will lead to an industry-leading knowledge base of resources to reduce supply chain missteps and strengthen suppliers’ ties with their customers.