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SPS Commerce Jumps 11%: Why Private Equity Wants In!

SPS Commerce suddenly finds itself at the center of a private-equity story after its shares jumped 11% on reports that GTCR is in discussions to acquire the supply-chain software company. A transaction could reportedly be announced within weeks, although no agreement has been finalized, the talks could still collapse, and another bidder could emerge. The interest did not materialize in isolation. SPS had already been exploring a potential sale with Morgan Stanley after activist investors Irenic Capital Management and Anson Funds Management accumulated stakes and pushed for strategic action. What makes the situation particularly interesting is what sits beneath the takeover headlines. SPS has spent more than 25 years building a large retail network, is producing nearly $200 million of trailing free cash flow, is expanding margins, and is preparing to monetize new AI products.