SPS Commerce Initiates Sale Process with Morgan Stanley
SPS Commerce Inc, a Minneapolis‑based supply‑chain software provider listed on NASDAQ under the ticker SPSC, has engaged Morgan Stanley to advise on a potential sale. The move follows pressure from activist investors Anson Funds, which disclosed a cooperation agreement with SPS in February, and Irenic Capital, whose stake and activism were reported in January. Both investors have called for leadership changes and a formal review of strategic alternatives, including an outright sale.
The company’s market valuation has collapsed by roughly 60% over the past twelve months, resulting in a current market capitalization of about $2.1 billion. Shares are trading at $54.44, down nearly 1% on the session, near the 52‑week low of $49.04 and well below the 52‑week high of $143.55.
Growth expectations have been sharply revised. After posting 18% revenue growth in fiscal 2025, SPS now projects revenue expansion of only 6%‑7% for fiscal 2026. This deceleration has pressured the public‑market valuation multiple and contributed to the broader de‑rating of growth‑software stocks amid AI‑driven competitive shifts.
SPS Commerce serves more than 50,000 customers worldwide, including blue‑chip retailers such as Walmart, Costco, Macy’s, Best Buy, Adidas and Hershey. The company provides cloud‑based solutions for electronic data interchange, inventory management and logistics, a recurring‑revenue profile that is traditionally attractive to private‑equity sponsors.
While private‑equity interest is expected, the article notes that no indicative valuation range, timeline for the sale process, or identities of potential buyers have been disclosed publicly. It is also unclear whether SPS management supports the sale or is responding reluctantly to activist pressure.
The next key date on the public calendar is the company’s Q2 2026 earnings release, tentatively scheduled for July 23. That filing could act as a de‑facto deadline catalyst, prompting management to address the strategic review in earnings commentary. Investors are advised to monitor any filings or public statements from Anson Funds or Irenic Capital for signals on the activists’ satisfaction with the process pace.