Dynatrace Inc shares climbed more than 6% in after-hours trading following reports that activist investor Starboard Value LP has taken a position in the software company and is encouraging it to better position itself around the growth of artificial intelligence, according to a report by the Wall Street Journal.
Starboard has become one of Dynatrace’s largest shareholders and has been in private discussions with management in recent months. The report also said a draft letter from Starboard suggested the company’s board should consider all options to maximise shareholder value.
Both Starboard and Dynatrace reportedly declined to comment when contacted.
Dynatrace, based in Waltham, Massachusetts, ended Monday’s regular session up 0.9%, giving it a market capitalisation of about $10.6bn. Despite the recent gains, the stock remains down roughly 23% over the past year.
The company was taken private by Thoma Bravo in 2014 in a deal involving Compuware and later returned to the public markets in 2019. Thoma Bravo is no longer a shareholder, according to Bloomberg-compiled data.
The latest report comes as Starboard continues to expand its activity across the industrial and technology sectors. Earlier on Monday, Bloomberg News reported that the activist investor has also built a meaningful stake in Flowserve Corp and is in discussions with that company regarding potential operational improvements, including margin expansion initiatives.
