Rapid7 shares climb on potential sale talks with PE firms

Shares of Rapid7 Inc (NASDAQ:RPD ), a cybersecurity firm, gained more than 4% Monday following reports of the company's engagement with investment bankers due to interest from buyout firms, Reuters reported.

The stock had an initial surge of 9% amidst the news.

Goldman Sachs and JPMorgan are advising Rapid7 as it navigates through this period of heightened interest, the report added.

The company is reportedly in preliminary discussions with private equity firms, including Advent, Bain Capital, and EQT (ST:EQTAB ), exploring the possibility of a sale.

While these talks indicate a potential acquisition, it is important to note that they may not necessarily result in a deal. There is still the possibility that Rapid7 could decide to remain independent.

Rapid7 shares are down nearly 30% year-to-date.

Source: Investing.com