The founders of Sprout Social, Inc. (NasdaqCM:SPT), are in talks to take the provider of social media tools to businesses private, changing course after listing the company in the stock market five years ago, people familiar with the matter said on May 20, 2024. Founders including Justyn Howard, Gil Lara, Aaron Rankin and Peter Soung control Sprout through a special class of shares. They have held talks with private equity firms that could partner with them on a deal, the sources said.

The Chicago, Illinois-based company's board has formed a special committee of independent directors to consider a deal and has hired investment bank Morgan Stanley (MS.N), as its adviser, the sources added. The sources cautioned that no deal is certain and requested anonymity because the matter is confidential. Sprout Social and Morgan Stanley did not immediately respond to requests for comment.