Five9 faces pressure from activist Legion on costs, board seat, sources say

Five9

22/10/2024 17:34

By Svea Herbst-Bayliss
       NEW YORK, Oct 22 (Reuters) - Legion Partners has built a
stake in Five9  FIVN.O  and is pushing for a board seat and cost
cuts, two sources familiar with the matter said on Tuesday,
making it the second activist investor to buy into the U.S. call
center software firm's stock.
    Legion's involvement comes several months after Anson Funds
Management built its stake and began urging the company to
consider a sale, Reuters reported in July.
    In addition to pushing for one board seat, Legion wants the
company to cut costs, the sources said. The firm is run by
Christopher Kiper.
    A representative for Five9 declined to comment. Reuters
could not determine the size of the stake.
    The activists got involved after Zoom Video Communications
 ZM.O  -- whose $15 billion deal to buy Five9 was rejected by
shareholders in 2021 -- made another bid last December. The two
did not reach a deal.
    Five9's share price has been under pressure. On Tuesday, the
stock traded at $30.41, down roughly 60% this year. The company
is valued at $2.3 billion.
    Based in San Ramon, California, Five9 makes cloud software
for call centers. It has more than 3,000 clients and generated
$910.5 million revenue in 2023.
    The Anson campaign is being lead by Sagar Gupta who
previously worked at Legion Partners.
       

 (Reporting by Svea Herbst-Bayliss; Editing by Sharon Singleton)
 ((svea.herbst@thomsonreuters.com; +617 233 2138; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))