Who Owns SPS Commerce Company?

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Who Owns SPS Commerce?

Understanding the ownership structure of a company like SPS Commerce is crucial for discerning its strategic trajectory, market influence, and accountability. A pivotal event in SPS Commerce's journey was its initial public offering (IPO) on April 22, 2010, which transformed its ownership from a privately held entity to a publicly traded corporation. SPS Commerce, Inc., headquartered in Minneapolis, Minnesota, was originally incorporated as St. Paul Software, Inc. on January 28, 1987, before reincorporating under its current name on May 30, 2001. The founders envisioned a company that would revolutionize retail supply chain management through cloud-based solutions, connecting retailers, suppliers, and logistics partners to automate and streamline data exchange.

Today, SPS Commerce stands as a prominent leader in cloud-based supply chain management software, known for its extensive network and consistent growth. The company reported revenues of $637.8 million for the year ended December 31, 2024, marking its 96th consecutive quarter of revenue growth. It serves over 50,000 recurring revenue customers across approximately 90 countries, demonstrating a significant market position. Its current ownership structure is dominated by institutional investors, a common characteristic of mature public companies.

Delving into SPS Commerce ownership reveals a landscape shaped by its transition to a public entity. As a publicly traded company, SPS Commerce stock is available for purchase by anyone, meaning no single entity or individual has absolute control. The question of 'Who owns SPS Commerce?' is best answered by examining its shareholder base, which primarily consists of institutional investors like mutual funds and pension funds, alongside individual retail investors. These institutional investors often hold significant stakes, influencing the company's direction through their voting power and investment strategies. Understanding the SPS Commerce financial ownership structure is key to grasping its market dynamics and corporate governance. The company's ticker symbol is SPSC, and its market capitalization reflects the collective investment in its future. While founders initially held substantial stakes, their influence typically dilutes over time as the company grows and issues more stock. The SPS Commerce parent company is effectively its public shareholders, guided by its board of directors and executive management. For those interested in a deeper dive into its strategic positioning, exploring the SPS Commerce BCG Matrix can offer valuable insights.

The SPS Commerce ownership history shows a clear shift from private to public hands following its IPO. This move made SPS Commerce publicly traded, opening its shares to a wider investment community. Consequently, identifying the largest individual shareholder of SPS Commerce can be challenging as ownership is widely dispersed. However, major institutional investors are often the most influential SPS Commerce investors. The company's CEO and ownership are intertwined, as leadership is accountable to the shareholders. There are no indications that private equity firms currently own SPS Commerce in a controlling capacity, nor are there affiliations with companies like Amazon in terms of ownership. The process of finding SPS Commerce ownership information is typically done through SEC filings and financial data providers. It is also important to note that SPS Commerce is not owned by a foreign company; it is a U.S.-based corporation.

SPS Commerce began its journey in 1987, originally known as St. Paul Software, Inc., with its roots planted in Minneapolis, Minnesota. The company's inception is often linked to Gary W. Anderson, though other founding team members, including Archie Black, Greg Pope, and Jim Frome, are also recognized. The core mission from the outset was to deliver Electronic Data Interchange (EDI) solutions, catering to the needs of retailers and their suppliers.

The initial financial backing for the company came from its founders, supplemented by a significant loan of $250,000 from Norwest Venture Capital. This early external investment played a crucial role in establishing the company's foundational financial structure. In 2000, a pivotal shift occurred when the company divested its software business to TIE Commerce, a Netherlands-based entity. This strategic move allowed SPS Commerce to pivot its focus towards internet-based business-to-business (B2B) exchanges, specifically targeting retailers and manufacturers, a transition that preceded its reincorporation as SPS Commerce, Inc. in May 2001.

Detailed public records regarding the precise equity distribution or shareholding percentages among the founders at the company's inception are not readily available. However, the early capital infusion from Norwest Venture Capital highlights the presence of external investors in shaping its initial financial landscape.

Founding Year

Established in 1987 as St. Paul Software, Inc.

Original Location

Minneapolis, Minnesota.

Founding Team Attribution

Gary W. Anderson, Archie Black, Greg Pope, and Jim Frome are associated with its founding.

Initial Business Focus

Provided Electronic Data Interchange (EDI) solutions to retailers and suppliers.

Early Funding

Secured initial capital from founders and a $250,000 loan from Norwest Venture Capital.

Strategic Shift in 2000

Sold software business to TIE Commerce, shifting focus to internet-based B2B exchanges.

Early Ownership Structure

While specific founder equity splits are not publicly detailed, early external investment from Norwest Venture Capital shaped the company's initial financial foundation. The company's evolution included a significant business sale and reincorporation, indicating a dynamic early ownership and operational history.

• The company's initial vision was to provide Electronic Data Interchange (EDI) solutions.
• A key early investor was Norwest Venture Capital, providing $250,000 in funding.
• In 2000, the company sold its software business to a Netherlands-based firm.
• This strategic shift preceded its reincorporation as SPS Commerce, Inc. in May 2001.
• Understanding the Target Market of SPS Commerce provides context for its early business focus.

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SPS Commerce's journey from a private entity to a publicly traded company marked a significant shift in its ownership structure. The company's Initial Public Offering (IPO) on April 22, 2010, on the Nasdaq Global Market under the ticker symbol 'SPSC', saw 4,096,694 shares of common stock offered to the public. This transition allowed for broader ownership and increased capital for growth. Prior to the IPO, a 0.267-for-1 reverse stock split was executed on April 13, 2010, and a subsequent 2-for-1 stock split occurred on August 22, 2019, impacting the per-share value and total outstanding shares.

The ownership landscape of SPS Commerce is predominantly characterized by institutional investment. As of March 30, 2025, institutional investors collectively held approximately 97.97% of the company's shares, underscoring their significant influence. Key institutional stakeholders include BlackRock, Inc., which held 15.42% (5,856,692 shares), and The Vanguard Group, Inc., with 12.12% (4,601,019 shares). Other substantial institutional investors as of the same date were Neuberger Berman Investment Advisers LLC (4.17% or 1,582,583 shares) and State Street Global Advisors, Inc. (3.88% or 1,472,677 shares). The ownership also features significant holdings by mutual funds, with iShares Trust - iShares Core S&P Small-Cap ETF holding 5.94% (2,255,605 shares) and Vanguard Index Funds - Vanguard Total Stock Market ETF holding 3.19% (1,212,659 shares) as of June 29, 2025. Insider holdings remained stable at 24.72% in April 2025, indicating continued commitment from company leadership.

These substantial institutional stakes mean that major investment firms collectively wield considerable influence over SPS Commerce's strategic direction and corporate governance through their voting power. Understanding who owns SPS Commerce provides insight into the company's stability and future trajectory, aligning with the Mission, Vision & Core Values of SPS Commerce which guide its operations.

Key Ownership Details

Institutional investors are the dominant force in SPS Commerce's ownership structure. This concentration of ownership among large firms suggests a focus on long-term value and strategic growth.

• SPS Commerce is a publicly traded company (Nasdaq: SPSC).
• Institutional ownership stands at approximately 97.97% as of March 30, 2025.
• BlackRock, Inc. and The Vanguard Group, Inc. are among the largest institutional shareholders.
• Insider holdings represent a notable portion of the overall ownership.

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The Board of Directors for SPS Commerce is comprised of eight members, a number that recently increased from seven with the addition of Razat Gaurav as an independent director in February 2025. These directors were re-elected by the company's shareholders on May 13, 2025. The current board includes Chad Collins, who also serves as the Chief Executive Officer, Razat Gaurav, Marty Réaume, Tami Reller, Philip Soran as the Chair of the Board, Anne Sempowski Ward, and Sven Wehrwein. Notably, James Ramsey, a director since 2014, retired and did not stand for re-election at the 2025 annual meeting.

Chad Collins holds the dual roles of Chief Executive Officer and board member, while Philip Soran chairs the board. The composition of the board reflects a blend of executive and independent directors, with Razat Gaurav specifically identified as an independent director. The voting power within SPS Commerce generally follows a one-share-one-vote principle, a standard practice for companies whose common stock is traded on the Nasdaq Global Market. Shareholders actively participate in corporate governance by voting on key issues such as director elections, the appointment of independent auditors, and advisory resolutions on executive compensation. The 2025 Annual Meeting demonstrated substantial shareholder backing for all director nominees and the company's executive pay structure. There is no publicly available information to suggest the existence of dual-class shares, preferential voting rights, or golden shares that would grant disproportionate control to any specific individuals or entities beyond their respective shareholdings.

The voting power for SPS Commerce shareholders is structured on a one-share-one-vote basis, a common framework for publicly traded companies on the Nasdaq. This means that the influence a shareholder has on company decisions, such as director elections and executive compensation approvals, is directly proportional to the number of shares they own. The recent 2025 Annual Meeting results underscore this, showing strong shareholder support for the board's proposed resolutions, indicating a unified approach among the majority of SPS Commerce investors regarding the company's direction and leadership. Understanding this voting structure is crucial for assessing SPS Commerce ownership and who controls SPS Commerce.

Understanding Shareholder Influence

Shareholder voting power is a key determinant in corporate governance. For SPS Commerce, this power is directly tied to share ownership.

• One-share-one-vote system ensures proportional influence.
• Shareholders vote on critical matters like director re-elections.
• Recent annual meetings show strong shareholder support for management.
• This structure is typical for companies on the Nasdaq Global Market.

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Over the past few years, SPS Commerce has demonstrated consistent growth, a trend underscored by both internal development and strategic acquisitions. This expansion has been supported by a strong financial performance, with the company achieving 96 consecutive quarters of revenue growth. The ownership structure reflects this stability and growth, with a significant majority of shares held by institutional investors, indicating confidence from the broader financial market in the company's trajectory.

The company's commitment to expanding its reach and customer base is evident in its recent acquisition of CarbonSix, which brought an additional 8,500 customers into the fold. This move is part of a broader strategy to increase revenue from existing clients, broaden distribution channels, and pursue further strategic acquisitions. These efforts are designed to maintain the company's impressive growth record and solidify its market position.

The ownership landscape for SPS Commerce shows a strong leaning towards institutional investors, who collectively hold nearly all of the company's publicly available shares. This high level of institutional backing suggests that major financial entities view the company as a stable and promising investment. While insider holdings remain substantial, they have seen little change, with recent activity focused on executive compensation through share grants rather than significant buying or selling by insiders.

Revenue Growth and Outlook

SPS Commerce reported revenues of $637.8 million in 2024, extending its streak of 96 consecutive quarters of revenue growth. For the first quarter of 2025, revenue reached $181.5 million, a 21% year-over-year increase. The company anticipates full-year 2025 revenues to be between $758 million and $763 million.

Acquisition Strategy and Impact

The acquisition of CarbonSix in early 2025 contributed significantly to the first quarter's revenue growth by adding 8,500 new customers. This acquisition aligns with the company's strategy of expanding its customer base and distribution channels. This strategic move is a key component of the company's ongoing growth plan.

Institutional vs. Insider Ownership

As of July 14, 2025, institutional owners held 98.96% of the company's shares, totaling 49,421,867 shares. Insider holdings, while significant at 24.72% in April 2025, have remained relatively stable. Recent insider activity includes share grants to executives, reflecting a focus on long-term incentives.

Analyst Sentiment and Stock Performance

Despite a 30.51% stock price decline from July 15, 2024, to $140.88 on July 14, 2025, analysts maintain a 'Strong Buy' consensus. The average 12-month price target is $195.80, suggesting a potential upside of 39.95%. This indicates strong market confidence in the company's future prospects, as detailed in the Brief History of SPS Commerce.

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