The Hard Truth About Parcel Tech Acquisitions
Discover how tech ownership impacts your shipping software and long-term strategy
You've probably sat through a dozen sales pitches this year, all with the same song and dance: cool new features, a rock-bottom price, and promises of a "partnership." But let me tell you something from my experience: what truly matters in the long run has nothing to do with what's on a demo screen, and all about how your investment is protected by the company who owns the technology.
You've seen the headlines. Tech companies are getting bought, sold, and merged constantly. For the executives at the top of the company getting purchased, it's a financial win. But for you, the person and company who has just gone live with the software or who has used it for a number of years, it's a gamble. Your company’s software is the backbone of your operations. When that backbone gets new owners, the stability you were counting on can disappear overnight.
So, when you are betting on a long-term partner, let's talk about the hard truth that a lot of tech companies don't want you to think about. While not all ownership changes are a bad thing, some are a serious risk to your business. I'm going to walk you through how to spot the difference, what to look for in a stable partner, and why this can be a bigger deal than you think.
The Risks When Your Tech Gets a New Owner
Not all acquisitions are created equal. One common type is a financial transaction where a company is bought, absorbed, and often forced to change its focus. When this happens, it's not always a "win" for you. It can be a moment of serious risk. Suddenly, the partner you chose is just one part of a bigger machine with new goals. And you're left to deal with the fallout.
That Roadmap You Were Promised? Gone.
Remember why you chose them? It was probably because of their product and their clear vision for the future. Well, the roadmap that sold you? It's likely getting “refocused”. The new parent company has its own agenda. If they have a competing product or products, your solution could be shelved and headed for sunset. The new features you were excited about might never see the light of day. Just like that, the software you invested in can go from a strategic asset to a legacy product...and you're the one left holding the bag.
The People You Trusted? Gone.
Mergers are messy. The teams and people with which you've built a relationship? They're often the first to go. Your trusted support person, the engineer who knew your custom setup, might be gone tomorrow. The new company is busy trying to put two different businesses together, are likely going to keep the people they are familiar with (i.e. their own employees), and that chaos usually means customer support takes a hit. The response times get longer, the quality drops, and you're left talking to a new person every time you call.
Surprise! Your Price Just Changed.
Your budget is built on a solid contract and predictable pricing. When new owners take over, all of that can go out the window. They might change the pricing model, slap new fees on your account, or just tell you that your old contract is no longer valid. What’s most likely? A forced upgrade to a new solution that you’re unfamiliar with. This is a financial hit you didn't budget for, far more than a simple inconvenience. You're forced to re-evaluate a major investment you thought was secure.
The Benefits of Partnering with a Stable Company
If you've been on the receiving end of a bad acquisition (even as recent as within the last month), you know the problems. Now, let's talk about the other side of that coin. When you partner with a company that has stable ownership, you get a reliable partner, not just a software solution. This stability brings a lot of value to the table.
That Roadmap You'll Actually Get
A company that isn't constantly building towards selling or worried about being sold can focus on what's important: building a better product. They don't have to fight for resources or worry about new leadership coming in and changing the entire plan. They can invest in a consistent product roadmap that you can count on, ensuring continuous improvement and innovation that keeps your operations moving forward. [Discover how stable ownership and technology lead to a better product experience.]
The People Who Are Still There
When the company is stable, the people tend to stick around. This means you're not constantly retraining a new account manager or a new support team. You get to build a real relationship with people who know your business and your unique setup inside and out. This leads to reliable, knowledgeable support and a deeper partnership that you just can't get from a company in constant turmoil.
A Predictable Long-Term Investment
You're not just buying a piece of software; you're making a long-term investment in your business’ efficiency. A company with stable ownership makes that a safe bet. You can plan for the future without worrying about a surprise price change or your software becoming obsolete. This is about future-proofing your logistics strategy so you can focus on growing your business, not managing the risk of your tech stack.
Why a Parcel-Focused Partner is a Must-Have
So far, we've talked about tech in general. But let's get specific: why does this ownership stuff matter so much for shipping software? Your shipping platform is more than just another piece of the enterprise software stack, powering your customer experience. It’s mission-critical, and a hiccup here means a direct hit to your bottom line. [Learn more: Master Multi-Carrier Shipping with a Parcel-Focused Approach]
The "Jack-of-all-Trades" Problem
You've probably seen it before. A big supply chain software company buys a smaller, focused shipping software company. It's supposed to be a win-win, but what really happens? The shipping software gets absorbed into a massive portfolio. It's no longer the main event; it's a side project competing for resources with the company’s "bread-and-butter" products. The once-expert company becomes a jack-of-all-trades and, as we all know, a master of none. The singular focus on your parcel logistics strategy is gone, and that's bad news for your business.
When the Technology is Cobbled Together
Before you buy, you have to look under the hood. A lot of solutions, especially those from companies with no real focus on shipping, aren't a singular cohesive product. They’re a series of technologies cobbled together from different companies to fill in the gaps.
They may be sold under a single name, but if one of those outside technologies fails, your entire system can go down. A partner with a singular, parcel-focused mission is more likely to have developed its own unified core technology that it can stand by, update, and support without relying on outside parts.
Product Direction Gets Lost
When a shipping solution becomes a small piece of a much larger puzzle, it gets lost in the shuffle. The new company has its own "new and shiny" projects, and the resources that were once dedicated to staying ahead of the ever-changing parcel landscape are now pulled in a dozen different directions.
This is where you see the real difference between a company that can execute shipping and one that merely orchestrates it. Execution is generating labels, completing shipments, and handling exceptions like the nitty-gritty work that keeps your business running. Orchestration is high-level data and analytics. The wrong type of acquisition prioritizes the latter, turning your partner into an analytics company that just dabbles in shipping. Without a dedicated, parcel-focused product direction, your shipping software can quickly become outdated and unable to handle the most critical part of your operation.
How to Evaluate Ownership Before You Buy
Alright, so you know the risks. The question now is, how do you protect yourself? You can’t just trust a company's marketing. You must do your homework and ask the tough questions. Here's what you need to dig into before you make a major commitment.
- Ask About Their Story: Don't just look at their current product; look at their history. Find out who owns them. Do they have a track record of stability, or a pattern of constant change? A company with a history of consistent ownership is a good sign that they're committed to the long game and not just a quick payday, even if it has included strategic, long-term acquisitions. This also means their leadership is likely focused on building a great product, not just prepping for the next sale.
- Look at the Leadership: Are the original founders or key leaders still there? If the people who built the company's vision are still on the team, that's a huge positive. It shows a continued commitment to the product and the original mission. If the entire leadership team has been replaced by a new group that came in with a big acquisition, it’s a sign that the company’s direction may be changing, and rarely for the better.
- Get Real on the Roadmap: Ask for a clear, detailed product roadmap. Don't settle for vague promises. Ask about their plan for the next one, three, and five years. More importantly, ask them to explain how their ownership structure protects that roadmap. A company with a stable, long-term owner can commit to a roadmap. A company that's up for sale can only commit to what's happening this quarter.
Want to learn more? Check out this checklist of questions that will help you identify areas for improvement and pave the way for a more streamlined parcel shipping program.
ProShip's Ownership & Mission: A Case for Stability
So, with all that in mind, let’s talk about ProShip. We believe in everything we just covered, and our own story is proof of it.
The company was founded in 1987 by a pair of US Navy veterans who had one clear mission: build the best shipping software on the planet. One of those co-founders, Justin Cramer, is still a part of our executive team today, ensuring that the original vision and core focus remain strong.
ProShip is now a part of Constellation Software Inc. This isn't a private equity move or a venture capitalist looking for a quick exit. Constellation is known for its "buy and hold for life" strategy. They acquire great software companies and give them the autonomy and resources to keep doing what they do best.
What does that mean for you?
- We don't have to fight for resources.
- We will never be disbanded or farmed out for parts.
- Our core focus will remain on parcel shipping technology and won't shift to other parts of the enterprise software stack.
In short, your investment in ProShip is safe. You can be certain of the longevity of your investment and the stability your supply chain requires, knowing our mission and ownership won't change.
The Bottom Line
Look, at the end of the day, your shipping software isn't just a tool – it’s the backbone of your logistics strategy. You're betting on the company behind it. The best products in the world are useless if the company that makes them gets sold, changes direction, or simply loses focus. The smart money is on a stable, long-term partnership that you can trust to keep your parcels moving.
So, when you're making your next shipping software decision, don't just ask about the product. Ask about the company's story, who's in charge, and what their future-proof plan is for the one thing you care about: parcel shipping.
For a full breakdown of the top three reasons shippers choose a partner like ProShip, check out our white paper: [Top 3 Reasons Enterprise Shippers Choose ProShip]
Ready to partner with a company whose ownership is as stable as its software? Let's talk. Schedule a discovery call with ProShip today to see how our long-term focus on parcel shipping can future-proof your logistics strategy.
Want to hear directly from our co-founder and other industry leaders? Register here for our virtual event, ProS Who Know, where we'll be discussing how to navigate the chaos of modern parcel shipping.