2023-08-14 09:27:40 ET
OneSpan ( NASDAQ: OSPN ) rose in premarket trading after activist investor Legion Partners renewed a call for the cyber security company to sell itself.
Legion Partners, which has an 8.7% stake in OneSpan, said the company should pursue a sale, according to a letter the investor wrote to the board on Monday.
"We strongly believe there are numerous strategic and financial parties interested in acquiring OneSpan given its highly attractive and stable customer base, and that a sale of the Company likely represents the best risk-adjusted alternative available today," Legion managing directors Chris Kiper and Ted White wrote in the letter.
The sale push from Legion comes more than two years after Legion nominated directors for the company's board and said the company should explore strategic alternatives , including selling itself. OneSan ( OSPN ) reached an agreement with Legion in May 2021 to add two directors.
“We believe current plans, as articulated by management on the company’s quarterly conference call last week, lack the urgency and magnitude of change required to expeditiously achieve fair value in the public markets,” Kiper and White wrote in the letter.
The renewed sales push also follows a Reuters report in early March that the cybersecurity firm was exploring options, including a possible sale. OneSpan ( OSPN ) was sad it to be working with Evercore ISI on a sales process that may attract interest from strategic and private equity buyers.
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OneSpan gains as activist Legion Partners renews call for sale of company