Subsequent Events

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

NOTE O – Subsequent Events

On January 5, 2016, our wholly owned subsidiary SPS Commerce Canada, Ltd. entered into a purchase agreement with the shareholders of Toolbox Solutions, Inc. (“Toolbox) to acquire all shares of Toolbox. Toolbox provides point-of-sale analytics and category management services to retailers and consumer packaged goods suppliers in North America. This acquisition expands our retail network along with our geographical presence and strengthens our analytics offerings. We paid $18.4 million in cash and $4.5 million in stock, or 64,891 shares of common stock, to the shareholders of Toolbox. This amount includes $1.1 million of stock, or 16,222 shares of common stock, that is subject to an earn-out and has not yet been issued. As of filing, we have not yet finalized our purchase accounting for this transaction.