Special situations and event-driven hedge fund Irenic Capital Management has urged Kinaxis to conduct a strategic review, while cautioning the Canadian software company’s board against making “reactive decisions” or taking “half measures”, according to a report by Reuters.
In a statement, Irenic emphasised that Kinaxis, a supply chain management software provider, should explore a sale, echoing similar sentiments from other investors both publicly and privately.
“The board should initiate a full strategic review, including soliciting interest for a sale of the entire company,” the hedge fund said.
Irenic, co-founded by former Elliott Investment Management and Indaba Capital Management executives Adam Katz and Andy Dodge, described Kinaxis as a “world-class software asset” that requires new leadership, including a fresh CEO and head of sales. They also recommended exploring interest from potential financial and strategic buyers.
Earlier on Tuesday, Kinaxis announced that it had hired Goldman Sachs, without specifying the reason for the hiring. However, the company maintained that executing its current strategic plan would maximise shareholder value.
Irenic pointed out that Robert Courteau, Kinaxis’ new Executive Chairman, acknowledged receiving inbound interest from financial sponsors but claimed that the board was currently unwilling to engage with them.
In response, a Kinaxis spokesperson stated: “The Board is focused on enhancing value for shareholders, is fully aware of its fiduciary duties, and will continue to act accordingly.” However, the spokesperson did not comment on whether the company had received any specific offers or how it was handling potential interest.
Irenic expressed concern that the board might not be fully considering alternative paths and emphasised that a proper evaluation of external interest was essential to determining the best way forward for the company.
Last week, investment firm Daventry Group publicly urged Kinaxis to consider a sale, describing the company as a high-quality asset likely to attract buyers willing to pay a “healthy premium.” Daventry and its affiliates currently own or control approximately 1.4% of Kinaxis’ outstanding stock, with the company valued at about $3.2bn.
