SPS Commerce weighing sale amid activist pressure

SPS Commerce, the Minneapolis-based provider of cloud supply-chain and electronic data interchange software, has engaged Morgan Stanley to explore a possible sale after activists Anson Funds and Irenic Capital pressed for a strategic review. Discussions are at an early stage and no transaction is guaranteed.

The company has opened a formal review to examine strategic options, according to people familiar with the matter. The appointment of an investment bank is expected to draw interest from private equity firms that target software businesses with recurring revenue and established customer bases.

Anson Funds and Irenic Capital accumulated stakes in SPS and urged a broader look at strategy. Earlier this year SPS entered a cooperation agreement with Anson that resulted in board-level changes, including the addition of two directors. Activists have pointed to the company’s steep share-price decline and slower near-term growth as reasons to consider alternatives, including a sale.

SPS supplies cloud-based EDI and supply-chain connectivity services to more than 50,000 customers worldwide, including retailers such as Walmart, Costco, Best Buy and Adidas. The company reported revenue growth of about 18% in 2025 and has guided to a 6%–7% revenue rise for 2026. Over the past year SPS’s market value has fallen by more than 80%, reducing its equity value to roughly $2 billion.

Market participants expect private equity interest in software assets that offer subscription-style revenue and predictable cash flows, though investors have shown caution about growth durability, valuation compression and the effects of artificial intelligence on business models. No buyer has been named and SPS Commerce has not set a timetable for decisions; SPS and Morgan Stanley did not comment on the review.