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May 22, 2003 — (WEB HOST INDUSTRY REVIEW) — SPS Commerce (spscommerce.com), a supply chain integration service provider, announced Monday the completion of an $18 million Series B round of financing.
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This latest round of funding included significant participation by a new investor, River Cities Capital Funds, along with contributions from existing investors St. Paul Venture Capital, CID Equity Partners, Adams Street Partners, Granite Private Equity, Svoboda Collins & Company, Pacific Capital Ventures and Axiom Venture Partners.
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The company says that it will use the funding to enhance its position as a leader in the supply chain integration services market through acquisition and expansion into new vertical industries.
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“Our extensive experience in the e-commerce, EDI and retail sectors helped us identify SPS as the likely category winner,” said River Cities Capital Funds principal Murray R. Wilson. “SPS Commerce, with its combination of flexible hosted service model, effective customer acquisition/deployment strategies and adroit partner selection, is well-suited to leverage its clear leadership position in the supply chain integration service market.”
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Existing investors noted that the new financing would propel acquisitions. “Because of SPS Commerce’s strong business model based on recurring revenues, now coupled with a positive cash flow, they can utilize this new financing to directly target acquisitions to extend their leadership position in the supply chain services market,” stated Michael Gorman, general partner at St. Paul Venture Capital.
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SPS Commerce also reported that the recent addition of venture capital funding followed a first quarter that saw the company reach profitability.
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SPS Commerce is based in St. Paul, Minnesota.
