Activist hedge fund Starboard Value has disclosed an 8.5% stake in BILL Holdings and is preparing a boardroom battle to push for strategic and operational changes at the financial automation software company, according to a report by Reuters.
The report cites a filing with the US Securities and Exchange Commission on Thursday as confirming that Starboard intends to nominate director candidates and continue engagement with BILL’s management and board. The news sent BILL shares up 10% in after-hours trading.
San Jose-based BILL, valued at nearly $5bn, processes over 1% of US GDP through its platform but has seen its market cap collapse, with shares down 86% since peaking in late 2021. The company has acknowledged its depressed valuation, announcing a $300m share buyback in August. Analysts note that despite forecast revenue growth of up to 15%, BILL trades at just three times revenue, making it one of the sector’s cheapest names.
Four of BILL’s 12 directors are up for re-election this year, and Starboard may nominate as many as four candidates ahead of Saturday’s deadline. The hedge fund has a track record of winning board influence, recently securing seats at Autodesk and Kenvue.
The activist’s entry comes as BILL’s peers are being acquired by strategics and private equity, fuelling speculation it could be next. Rival Melio is being bought by Xero, while AvidXchange was acquired by TPG and Esker by Bridgepoint.
Starboard, led by Jeff Smith, has been especially active this year, building positions in Rogers and Tripadvisor while maintaining its focus on underperforming technology and industrial companies.
