Rapid7, a cybersecurity company, is nearing a settlement with activist investor Jana Partners following discussions about boosting the company’s share price and exploring strategic options, including a potential sale. Under the terms being discussed, three new members would be added to Rapid7’s eight-member board, sources familiar with the matter told Reuters.
An agreement could be finalized as early as Monday, though the situation remains fluid, according to the sources. Neither Rapid7 nor Jana Partners commented on the negotiations.
The Boston-based company, which specializes in vulnerability management, has faced challenges as its stock has dropped 41% over the past 52 weeks and 28% this year, bringing its market value down to approximately $1.8 billion. Jana Partners owns a 5.8% stake in Rapid7, according to a March regulatory filing.
In addition to the ongoing settlement talks, Rapid7 had previously attracted acquisition interest from buyout firms like Advent, Bain Capital, and EQT.
