SPS Commerce Hires Morgan Stanley to Explore Sale as Market Cap Slumps 60%
SPSC•SPS Commerce has engaged Morgan Stanley to explore a potential sale under pressure from activists Anson Funds and Irenic Capital, as its market capitalization has plunged about 60% to $2.1 billion. Revenue growth for 2026 is forecast at just 6-7%, down from 18% in 2025.
1. Sale Process Initiation
SPS Commerce has formally retained Morgan Stanley to manage a strategic review that may lead to a full sale of the company. The engagement marks the first public step in a formal process expected to draw multiple bids from private equity and strategic buyers.
2. Activist Investors' Role
Investment firms Anson Funds and Irenic Capital have increased pressure on the board by securing a cooperation agreement and pushing for leadership changes. Their campaign specifically demanded a review of strategic alternatives, including exploring a sale to maximize shareholder value.
3. Financial Performance Decline
The company’s market capitalization has fallen approximately 60% over the past year to about $2.1 billion, with shares trading near their 52-week low. Revenue growth slowed sharply from 18% in 2025 to a projected 6-7% in 2026, weighing on valuation multiples.
4. Private Equity Appeal
Despite growth concerns, SPS Commerce serves over 50,000 global customers, including Walmart, Costco and Macy’s, through cloud-based supply chain solutions. The sticky, recurring-revenue model and blue-chip client roster are seen as attractive assets for leveraged buyouts seeking stable cash flows.
