Cybersecurity company Rapid7 (RPD.O) is close to finalizing a settlement with activist investor Jana Partners, following discussions to enhance its share value through operational improvements and potential sale options.
According to sources familiar with the matter, three new members are expected to join Rapid7’s current eight-member board as part of the agreement. An official announcement could be made as early as Monday, although negotiations remain subject to change.
Boston-based Rapid7, known for its vulnerability management services, has faced challenges as corporate clients reduce cybersecurity spending amid economic uncertainty. The company’s stock has declined 41% over the past year and 28% this year alone, bringing its market value down to approximately $1.8 billion.
Jana Partners, which holds a 5.8% stake in Rapid7 with 3.7 million shares, has been actively pushing for changes. In October, reports suggested that Rapid7 was exploring acquisition interest from private equity firms, including Advent, Bain Capital, and EQT.
The settlement would mark another instance of activist influence, with recent data from Barclays indicating that activist investors secured 119 board seats in 2024, with 76% achieved through settlements.
While Jana Partners has not commented, this move signals growing efforts to stabilize Rapid7’s market performance and explore strategic growth opportunities.
