Activist Jana has a stake in Rapid7. There are two paths to bolster value at the cybersecurity company

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In a situation like this, there are typically two paths to boost shareholder value, including a potential overhaul of management

is a global cybersecurity software and services provider. Its products span across information security, cloud operations, development and information technology teams, enabling them to understand attackers and leverage that information to take control of their fragmented attack surface. Rapid7 Managed Threat Complete is the company's flagship offering, and it includes the Rapid7 Managed Detection and Response program.

Despite its favorable position, the company has delivered negative returns on a one-, three-, and five-year basis. Rapid7 is one of three main players in vulnerability management, yet it's assigned a much smaller revenue multiple compared to peers Tenable and Qualys .

Given industry tailwinds, there may be several strategic and financial buyers interested in this company. Recent transactions in the cybersecurity sector include Cisco'sof Sumo Logic. If Jana does advocate for a sale of Rapid7, it will ask the board to do it through a full sales process that attains the highest value for shareholders. In addition, Jana has awith Cannae Holdings, which could be helpful in providing the equity in a strategic transaction with a private equity firm.

 

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Activist Jana has a stake in Rapid7. There are two paths to bolster value at the cybersecurity companyIn a situation like this, there are typically two paths to boost shareholder value, including a potential overhaul of management
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