SPS Commerce Hires Morgan Stanley to Explore Sale After Activist Push

SPS Commerce Inc (NASDAQ:SPSC) is exploring a potential sale following pressure from activist investors Anson Funds and Irenic Capital, Reuters reported, citing three sources familiar with the matter. According to the report, the company recently tapped Morgan Stanley to assist with the process, which is expected to attract significant interest from private equity firms.

Deal Details

• Target: SPS Commerce (SPSC)
• Advisor: Morgan Stanley
• Type: Potential acquisition by private equity firms
• Status: Early exploratory stage; no formal sale process launched yet

Reasons for the Deal

Activist investors are pushing for a sale to unlock shareholder value, believing the market undervalues the company. Anson Funds and Irenic Capital have a history of pressing for strategic changes or sales at their portfolio companies.

Regulatory Challenges

No regulatory challenges have been mentioned yet, but any acquisition would be subject to CFIUS review if a foreign buyer is involved.

Impact on Shares

SPSC shares rose 4% in after-hours trading on the news, indicating investor optimism about a potential deal. However, the process is still early and may not result in a sale.