SPS Commerce is evaluating a potential sale of the business following increasing pressure from activist shareholders, according to a report by Reuters.
The Minneapolis-based supply chain software provider has engaged Morgan Stanley to assist with the review process, which is expected to attract interest from private equity buyers, sources said. No transaction is guaranteed, and discussions remain at an early stage.
The move comes after activist investors Anson Funds and Irenic Capital accumulated positions in the company and pushed for changes aimed at enhancing shareholder value. Both investors have advocated for a broader review of strategic options, including a potential sale of the business. Earlier this year, SPS Commerce entered into a cooperation agreement with Anson that resulted in board-level changes, including the appointment of two new directors.
SPS Commerce provides cloud-based supply chain and electronic data interchange (EDI) solutions to more than 50,000 customers globally, serving retailers, suppliers and distributors across multiple sectors. Its customer base includes major retailers such as Walmart, Costco, Best Buy and Adidas.
The company’s strategic review follows a prolonged decline in its share price. SPS Commerce has lost more than 80% of its market value over the past year, reducing its equity valuation to roughly $2 billion. The sell-off reflects broader investor caution toward software companies amid concerns over growth durability, valuation compression and the disruptive impact of artificial intelligence across the sector.
While SPS Commerce has historically delivered strong top-line expansion—including revenue growth of 18% in 2025—the company has guided to a more modest 6% to 7% revenue increase for 2026. The slowdown has intensified investor scrutiny and strengthened the case for strategic action among activist shareholders seeking to unlock value.
The situation underscores a broader trend in shareholder activism during 2026, with activists increasingly favouring strategic reviews and sale processes as a route to value creation amid a recovering M&A market. Market participants expect private equity firms to remain active buyers of software assets with recurring revenue profiles and established customer relationships, despite ongoing uncertainty surrounding sector growth prospects.
Neither SPS Commerce nor Morgan Stanley commented on the reported review process.
