Sprout Social (NASDAQ:SPT) has no plans to sell or take the company private, the company said in a Tuesday statement in response to an earlier report by Reuters.
The company acknowledged that it occasionally receives interest from various parties, but claimed there is no ongoing deal to sell itself.
“As a public company, the Company receives inbound interest from time to time from various counterparties, and the Company’s Board of Directors considers such interest as and when appropriate. Currently, there is no process in place to sell or take the Company private,” it said.
SPT shares plunged more than 8% on the report.
Reuters reported on Monday that Sprout Social’s founders, including Justyn Howard, Gil Lara, Aaron Rankin, and Peter Soung, were in discussions to take the company private, reversing its public listing from five years ago.
These talks reportedly involved private equity firms that might partner in the deal.
According to the report, the company’s board has also formed a special committee of independent directors to evaluate the potential deal and has engaged Morgan Stanley as its adviser.
However, the report cautioned that a deal is not guaranteed.