Scopia boosts stake in Verra Mobility after company adds another activist to board

Verra Mobility

03/02/2022 22:15

By Svea Herbst-Bayliss
    BOSTON, Feb 3 (Reuters) - Hedge fund Scopia Capital
Management on Thursday said it now owns a bigger stake in Verra
Mobility Corp  VRRM.O  and plans to keep close tabs on the
technology company's strategy only weeks after it handed a board
seat to another activist investor.
    New York-based Scopia, already one of Verra Mobility's 10
largest investors, said it increased its ownership to 5%, or 7.8
million shares, from 4.4%, in a regulatory filing.
    Scopia said it plans to talk to the board and management
about ways to boost Verra Mobility's share price but stopped
short of making any specific recommendations. In the future,
however, the filing said, the hedge fund could suggest changes
in strategy, including calling for a sale of the company.
    A representative for Verra Mobility, which provides
technology solutions to governments and school districts to make
mobility safer and easier, did not immediately respond to a
request for comment.
    The Mesa, Arizona-based company is valued at $2.5 billion
and its stock price has gained 15% in the last 52 weeks.
    Scopia had $2.6 billion in assets under management at the
end of 2020, according to a regulatory filing made in 2021.
    The words in Scopia's filing echo language used by Inclusive
Capital Partners, the investment firm founded by Jeffrey Ubben
who cemented his reputation as a collaborative activist while
running ValueAct Capital for two decades, last year.
    Inclusive, which had $1.3 billion in assets at the end of
2020, began buying its 6.7% stake in Verra Mobility in August
and by the end of December one of the firm's partners, Sarah
Farrell, was given a board seat.
    As activists hunt for targets, it has become more common for
several to invest in the same company. Recently, Starboard Value
took a position in Mercury Systems  MRCY.O  where Jana Partners
is already pushing for change. 

 (Reporting by Svea Herbst-Bayliss; Editing by Bernard Orr)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))