Five9, a US-based call centre software provider, is reportedly close to a settlement with Anson Funds Management after sustained pressure from the hedge fund and other activist investors seeking changes to enhance its share price, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as revealing that under the terms of the proposed agreement, Sagar Gupta, a portfolio manager at Anson Funds, is expected to secure a seat on Five9’s nine-member board. The deal could be announced as early as Monday, although the final terms remain subject to change.
Representatives for Five9 and Anson declined to comment.
Anson Funds initially disclosed its stake in Five9 in July, and by October, Legion Partners, another activist investor, had also built a position and sought a board seat. Investment firm Scalar Gauge, led by Sumit Gautam, has also supported Gupta’s addition to the board, according to one source.
Five9 has faced declining market value, with shares dropping 44% year-to-date, reducing its market capitalisation to approximately $3.2bn. However, the stock has rallied 15% in the past month, buoyed by better-than-expected third-quarter revenue and a narrower net loss compared to the same period last year.
Last year, Five9 rejected an acquisition bid from Zoom Video Communications (ZM.O), known for its virtual meeting software, one source revealed.
For Anson Funds, the move represents part of a broader strategy to expand its shareholder activism. The hedge fund, which manages around $2bn in assets, has hired seasoned professionals like Gupta to spearhead these efforts. Gupta, who joined Anson in October 2023 after leading technology, media, and telecom investments at Legion Partners, has played a key role in this initiative.
Anson’s Investments Master Fund gained 10.6% in the first half of 2024, following an 18.2% return in 2023, according to an investor update.
