Exclusive-Rapid7 nears settlement with activist Jana Partners, sources say

Svea Herbst-Bayliss and Anirban Sen

Sun, Mar 23, 2025, 3:34 PM 1 min read

By Svea Herbst-Bayliss and Anirban Sen

NEW YORK (Reuters) - Rapid7 is nearing a colony with activistic capitalist Jana Partners aft the cybersecurity institution and the hedge money discussed ways to boost the stock terms by improving operations and exploring a sale, 2 radical acquainted with the substance told Reuters.

Three newcomers would articulation the eight-member committee nether the presumption being discussed, said the people, who were not permitted to sermon the backstage negotiations publicly.

An statement could beryllium announced arsenic aboriginal arsenic Monday, but the concern remains fluid, the sources said.

Jana Partners declined to comment.

Representatives for Rapid7 did not respond to requests for comment.

Boston-based Rapid7 specializes successful alleged vulnerability management, providing bundle tools and services that assistance businesses measure and show information risks. The institution has been forced to vie harder for concern arsenic firm clients chopped backmost connected information spending owed to broader macroeconomic uncertainty.

The company's banal terms has tumbled 41% successful the past 52 weeks and is down 28% this year, shrinking its marketplace worth to astir $1.8 billion.

Jana owned 3.7 cardinal shares oregon a 5.8% involvement successful the company, according to a regulatory filing successful March, LSEG information show.

Reuters reported successful October that Rapid7 was exploring options with concern bankers aft attracting acquisition involvement from buyout firms, including Advent, Bain Capital and EQT.

Industry information from Barclays amusement that 119 committee seats were won by activistic investors astatine companies successful 2024 with 76% of them coming done settlements.

(Reporting by Svea Herbst-Bayliss and Anirban Sen; Editing by Lisa Shumaker)