Activist hedge fund Irenic Capital Management has taken a roughly 2% stake in financial reporting software provider Workiva (NYSE: WK) and is pressing for governance changes, improved profitability, and a potential sale, according to a report by reuters.
The reports cites unnamed sources familiar with the matter as revealing that the New York-based firm, founded by former Elliott and Indaba executives Adam Katz and Andy Dodge, is urging the $4.7bn Ames, Iowa-headquartered business to simplify its dual-class share structure, make all directors subject to annual elections, and appoint two new board members, including Irenic executive Krishna Korupolu.
Irenic has also called for Workiva to explore strategic alternatives, citing strong private equity demand for enterprise software assets. Workiva reportedly received interest from a buyout firm three years ago.
The campaign follows a near-19% share price decline since CEO Julie Iskow took the helm in April 2023, a period in which proxy peers rose 20% and the S&P 500 gained 70%. Irenic argues the company’s valuation – trading at a 27% discount to rivals such as Workday and ServiceNow – reflects poor execution and an imbalance between growth and profitability.
Governance is also a flashpoint: five of Workiva’s seven directors have served since 2014, which Irenic says underscores the need for board refreshment. The firm has sent two letters to the board outlining its concerns and has not ruled out nominating directors if an agreement cannot be reached.
Workiva provides cloud-based reporting and compliance software to 90% of the Fortune 500, including Coca-Cola, Chevron, and United Airlines. Neither Workiva nor Irenic commented on the talks.
