The sources say that the exclusivity-Rapid7 is approaching the settlement with the activist Jana Partners.

By svea autumn-bayliss and Anirban Sen

New York (Reuters) – RAPID7 discussed a settlement with active investor Jana Partners after the Cyber ​​Security Company and the hedge fund in discussing ways to enhance the share price by improving operations and exploring a sale.

Persons, who were not allowed to discuss private negotiations, said that three of the new arrivals will join the eight members of the board of directors according to the conditions that are discussed.

The sources said that an agreement could be announced early on Monday, but the situation is still liquid.

Jana Partners refused to comment.

RAPID7 representatives did not respond to the suspension requests.

Boston -based RAPID7 specializes in the so -called weakness management, providing software tools and services that help companies to evaluate and monitor safety risks. The company has been forced to compete more for business, as companies’ customers retreat to security spending due to uncertainty in the wider macroeconomic economy.

The company’s share price decreased by 41 % in the last 52 weeks and decreased by 28 % this year, which reduced its market value to approximately $ 1.8 billion.

Jana has 3.7 million shares or 5.8 % share in the company, according to an organizational report in March, according to LSEG data.

Reuters reported in October that RAPID7 was exploring options with investment bankers after attracting acquisitions from acquisition companies, including Advent, Bain Capital and EQT.

Industry data from Barclays shows that 119 seats from the Board of Directors have been won by active investors in companies in 2024 with 76 % of them through settlements.

(Participated in Svea Herbst-Bayllis and AnirBan Sen reports; edited by Lisa Shomker)