Rapid7, a cybersecurity company based in Boston, announced on Monday that it has reached an agreement with activist investor Jana Partners to add three new directors to its board. The new members—Wael Mohamed, Mike Burns, and Kevin Galligan—bring expertise in digital transformation, finance, operations, and investment strategies. One of the new directors is a partner from Jana Partners.
CEO Corey Thomas stated that the new additions will help the company refine its strategy, improve execution, and drive greater value for shareholders. Jana Partners’ managing partner, Scott Ostfeld, expressed satisfaction with the engagement, calling it “highly constructive” and noting optimism about Rapid7’s steps to enhance its leadership and operational capabilities.
The settlement comes after ongoing discussions between the two sides about ways to increase Rapid7’s share price, which has been affected by broader economic uncertainties. The company, which specializes in vulnerability management, has faced heightened competition as businesses reduce security spending. Rapid7’s stock has dropped 41% in the past year and 28% this year, reducing its market value to approximately $1.8 billion.
Jana Partners holds a 5.8% stake in Rapid7, amounting to 3.7 million shares, according to a regulatory filing. The company had previously been exploring potential acquisitions with interest from buyout firms such as Advent, Bain Capital, and EQT.