Exclusive-Five9 faces pressure from activist Legion on costs, board seat, sources say

By Svea Herbst-Bayliss

NEW YORK (Reuters) - Legion Partners has built a stake in Five9 (NASDAQ:FIVN ) and is pushing for a board seat and cost cuts, two sources familiar with the matter said on Tuesday, making it the second activist investor to buy into the U.S. call center software firm's stock.

Legion's involvement comes several months after Anson Funds Management built its stake and began urging the company to consider a sale, Reuters reported in July.

In addition to pushing for one board seat, Legion wants the company to cut costs, the sources said. The firm is run by Christopher Kiper.

A representative for Five9 declined to comment. Reuters could not determine the size of the stake.

The activists got involved after Zoom Video Communications (NASDAQ:ZM ) -- whose $15 billion deal to buy Five9 was rejected by shareholders in 2021 -- made another bid last December. The two did not reach a deal.

Five9's share price has been under pressure. On Tuesday, the stock traded at $30.41, down roughly 60% this year. The company is valued at $2.3 billion.



Based in San Ramon, California, Five9 makes cloud software for call centers. It has more than 3,000 clients and generated $910.5 million revenue in 2023.

The Anson campaign is being lead by Sagar Gupta who previously worked at Legion Partners.

Source: Investing.com