Five9 nears settlement with Anson Funds under activist pressure

Zoom Communications

08/12/2024 20:58

By Svea Herbst-Bayliss
       NEW YORK, Dec 8 (Reuters) - Five9  FIVN.O  is nearing a
settlement with Anson Funds Management after the hedge fund and
several other activist investors pushed the U.S. call center
software company to make changes that would boost its share
price, sources familiar with the matter said on Sunday.
    Anson Funds' portfolio manager Sagar Gupta would receive a
board seat under the terms that are being discussed, said the
people who requested anonymity because the negotiations are
private. The board has nine members.
    An agreement could be announced as early as Monday, but the
situation remains fluid, the sources said.
    Representatives for Five9 and Anson Funds declined to
comment.
        Reuters first reported in July that Anson had amassed a
stake in Five9 and was engaging with the company. In October
Reuters reported that Legion Partners had also built a stake in
the company and asked for a board seat, making it the second
activist investor to pressure the company.
    Investment firm Scaler Gauge, run by Sumit Gautam, has also
engaged with the company in recent months and supports Gupta's
addition to the board, one of the sources said. 
    Five9's market value has fallen to about $3.2 billion after
its stock tumbled 44% so far this year. In the last month the
stock price has climbed 15%.
    In November the company posted stronger third-quarter
revenue and a smaller net loss than in the year-ago period.
    Five9 last year turned down an acquisition offer from Zoom
Video Communications  ZM.O , the maker of the popular virtual
meeting software, one of the sources said.
    Anson, which is run by chief investment officer Moez Kassam
and oversees roughly $2 billion in assets, hired Gupta last year
from activist investment firm Legion as it works to build out
its shareholder activism and engagement strategy. In the first
half of the year, the Anson Investments Master Fund LP gained
10.6% after returning 18.2% in 2023, according to an investor
update.
    Gupta spearheaded Legion's investments in technology, media
and telecommunications and joined Anson in October 2023.
    

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