By Svea Herbst-Bayliss
NEW YORK (Reuters) – Five9 (NASDAQ:) is close to a deal with Anson Funds Management after the hedge fund and several other activist investors pressured the U.S. call center software company to make changes that would boost its share price, sources familiar with the matter. he said on Sunday.
Anson Funds portfolio manager Sagar Gupta would receive a board seat under terms being discussed, said the people, who requested anonymity because the negotiations are private. The board has nine members.
A deal 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 built up a stake in Five9 and was collaborating with the company. In October, Reuters reported that Legion Partners had also taken a stake in the company and applied for a seat on the board, becoming the second activist investor to pressure the company.
Investment firm Scaler Gauge, led by Sumit Gautam, has also engaged with the company in recent months and supports bringing Gupta to the board, one of the sources said.
Five9's market value has fallen to about $3.2 billion after its shares fell 44% so far this year. In the last month the share price has risen 15%.
In November, the company reported stronger third-quarter revenue and a smaller net loss than the same period a year earlier.
Five9 last year rejected a takeover offer from Zoom Video Communications (NASDAQ:), the maker of popular virtual meeting software, one of the sources said.
Anson, led by chief investment officer Moez Kassam and overseeing roughly $2 billion in assets, hired Gupta last year from activist investment firm Legion as it works to develop its activism and shareholder engagement strategy. In the first half of the year, Anson Investments Master Fund LP gained 10.6% after returning 18.2% in 2023, according to an investor update.
Gupta led Legion's investments in technology, media and telecommunications and joined Anson in October 2023.
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