NEW YORK, Sept 17 (Askume) – Hedge fund Irenic Capital Management on Tuesday urged Kinaxis (KXS.TO) to consider who might want to acquire the Canadian software company, and warned its board against making “reactive decisions” and not taking “half-measures.”
“The board should initiate a comprehensive strategic review, which includes interest in selling the entire company,” Irenic said in a statement, echoing private and public calls from other investors to sell the company.
Irenic, which is managed by former Elliott Investment Management and Indaba Capital Management executives Adam Katz and Andy Dodge, called Kinaxis a “world-class software asset” and said it needed to find a new CEO and sales chief and review interest in Kinaxis from potential financial and strategic buyers.
Earlier on Tuesday, the supply chain management software provider said it hired Goldman Sachs, but did not disclose the purpose. But the company also said the board “strongly believes that executing on its strategic plan is the best way to maximize shareholder value.”
Irenic said Kinaxis’ new executive chairman, Robert Courteau, said there was interest from financial sponsors, but the board was not currently prepared to engage with them.
A Kinaxis spokesperson said “The board remains committed to enhancing shareholder value, is fully aware of its fiduciary responsibilities and will continue to act accordingly.”
A spokesperson did not directly respond to a request for comment on how much interest the company has received and how it might participate.
Irenic said the board could not decide on the “best path forward” without considering alternative paths, and expressed concern that the board was not adequately examining the potential benefits to the company.
Investment firm Daventry Group last week publicly urged Kinaxis to sell , saying it was a high-quality asset that many buyers were willing to pay a “healthy premium” to acquire.
Daventry and his affiliates own approximately 1.4% of outstanding shares of Kinaxis, which has a market capitalization of about $3.2 billion.
