SPS Commerce Sale Looms
SPS Commerce Explores Sale Amid Activist Pressure, Morgan Stanley Advising on Options
Anonymous
Key Points
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Reuters, via Seeking Alpha, notes that SPS Commerce is under activist pressure in part due to the rapid adoption of artificial intelligence in supply chain management.
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Morgan Stanley is advising SPS Commerce on the potential sale, with discussions indicating the deal could be a full sale or include other strategic alternatives, signaling a structured and flexible process.
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Industry reports suggest a broad field of private equity bidders could be interested in SPS Commerce’s cloud-based supply chain software assets.
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GuruFocus notes that GF Value data is not available for SPS Commerce, highlighting a valuation picture that relies on the current P/E and other metrics rather than GF Value insights.
SPS Commerce is exploring a potential sale after months of pressure from activist investors, Reuters reported on June 23, 2026. The Minneapolis-based supply chain software company has hired Morgan Stanley to advise on the process, which could result in a full sale or other strategic alternatives.
The news sent shares up 7.5% to $58.95 before profit-taking set in, according to Seeking Alpha. The stock had already fallen roughly 40% year-to-date and as much as 80% over the past year, leaving the company with a market cap of about $2 billion.
Two Activist Funds Pushed Hard for a Sale
The pressure campaign started in December 2025, when Anson Funds Management disclosed a stake and called for an immediate sale at the Bloomberg Activism Forum. Portfolio Manager Sagar Gupta argued the stock had 40% upside to $120 per share. Yahoo Finance reported that Irenic Capital Management joined the push on January 29, 2026, adding a second activist voice demanding a strategic review.
By February 2026, the company signed a Cooperation Agreement with Anson Funds. SPS added two new independent directors — Michael McConnell and Fumbi Chima — and raised its share repurchase authorization to $300 million. Gupta said the new directors would "add important expertise to advance SPS' value creation."
Two Big Acquisitions Failed to Win Investors Over
SPS spent over $415 million on two deals in roughly a year. It acquired SupplyPike for $206 million in 2024 and Carbon6 Technologies for $210 million in January 2026. Analysts called the Carbon6 deal an "expensive" push into the Amazon seller market. Critics saw both moves as defensive — meant to hide slowing organic growth rather than build genuine momentum.
The numbers back up those concerns. SPS is guiding for just 6% to 7% revenue growth in 2026, down from 18% in 2025. Projected full-year revenue sits at $796 million to $802 million. Needham analyst Scott Berg cut his price target from $160 to $75, citing "headwinds from Amazon revenue recovery" as a key drag on the business.
AI Disruption Makes the Stand-Alone Case Harder
Activists argue that SPS faces a structural threat. The rapid rise of AI in logistics is shaking up legacy supply chain software. ERP giants like Oracle and SAP are weaving AI-powered supply chain tools directly into their platforms. That makes it harder for a standalone provider like SPS — which relies heavily on older Electronic Data Interchange, or EDI, technology — to compete at scale.
Seeking Alpha noted that SPS serves more than 50,000 customers, including Walmart, Costco, and Best Buy. That network could be attractive to a private equity buyer, with firms like Thoma Bravo seen as likely candidates. A strategic buyer such as SAP or Oracle could fold SPS's customer base into a larger ERP ecosystem, though that would reduce competition in the niche EDI software space.
Leadership Shake-Up Adds to Uncertainty for Investors
The company is also navigating a significant leadership transition. Long-time CFO Kimberly Nelson announced her retirement in February 2026 after 19 years and officially stepped down on June 1. Joseph Del Preto, formerly of Sprout Social, took over as CFO in March 2026. CEO Chad Collins, appointed in October 2023, has faced scrutiny over capital allocation decisions.
GuruFocus notes the company's P/E ratio stands at 23.1x and that insiders sold a net $0.1 million worth of shares over the last three months — a small but notable sign of internal caution. No potential buyers or deal timelines have been confirmed. The process remains open, with Morgan Stanley evaluating all strategic options.
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