Activist investor Jana pushes Rapid7 to consider a sale

NEW YORK : Jana Companions, the activist investor that has successfully pushed for the sale of multiple companies, has constructed a stake in Rapid7 and is urging the cybersecurity firm to promote itself, a particular person acquainted with the subject mentioned on Wednesday.

The details of Jana’s stake comes months after Reuters reported in 2023 that the Boston-headquartered firm changed into as soon as exploring alternate ideas that integrated a conceivable sale.

News of Jana’s involvement, first reported by the Wall Road Journal, pushed Rapid7’s stock sign up more than 8 per cent in noon trading on Wednesday. Jana Companions managing partner and portfolio supervisor Scott Ostfeld discussed the funding at an funding conference in Monaco.

Since January, the stock sign has tumbled 25 per cent.

Besides urging a sale, Jana also will be pushing the firm to enhance operations and forecasting. It as of late reduced its 2024 outlook.

Rapid7 makes a speciality of so-called vulnerability management, providing map tools and services and products that lend a hand companies assess and display screen security risks. It has been compelled to compete more sturdy for its industrial as company customers minimize down on spending.

The hedge fund is working with Cannae Holdings, a publicly traded conserving firm, and the premise would be for Cannae to partner with a non-public equity company to win Rapid7.

Jana previously pushed for a sale of Sleek Relic which changed into as soon as taken non-public by TPG and Francisco Companions remaining yr. It also pushed for a sale of Zendesk which changed into as soon as taken non-public in 2022 by funding firms led by Hellman & Friedman and Permira.