Supply chain software maker SPS Commerce SPSC.O is exploring a sale amid pressure from activist investors, according to three people familiar with the matter.

The company is working with investment bank Morgan Stanley MS.N on the potential sale, which is expected to draw interest from private equity firms, the sources said, requesting anonymity to discuss confidential matters.

SPS Commerce and Morgan Stanley did not immediately respond to requests for comment.

Minneapolis-based SPS Commerce provides cloud-based software that helps retailers, suppliers and distributors manage logistics, inventory and electronic data interchange across their supply chains. It serves more than 50,000 customers globally, including retailers Walmart, Costco, Macy’s, Best Buy, Adidas and Hershey.

SPS Commerce faces pressure from activist investors, including Anson Funds and Irenic Capital, which disclosed stakes in the company in late March and early April, respectively, and pushed for changes, including leadership shifts and a review of strategic alternatives, including a potential sale.

Shares of SPS Commerce have lost more than 80% over the last year, leaving the company with a market capitalization of roughly $2 billion. Investors have pulled back from software stocks due to the uncertainty over AI's impact on the sector.

SPS Commerce has posted double-digit revenue growth in the past, including 18% in 2025, but the firm expects to increase revenue 6% to 7% in 2026. Investors have grown more cautious on software valuations and the sector’s outlook.