Shares of ACI Worldwide (NASDAQ: ACIW) jumped today, up by 10% as of 1:20 p.m. EST, after activist investor Starboard Value increased its stake in the company and sent management a letter advocating for a sale. Starboard now owns 9% of ACI Worldwide.
Starboard has been slowly accumulating shares in the fintech company , which enables electronic payments, throughout the year. ACI shares have lagged the broader market in 2020, and Starboard suggests that the company is undervalued and that a sale would unlock shareholder value. The investor notes that ACI declined to pursue a sale a year ago, believing that it could fare better as a stand-alone public company. The stock had declined by as much as 45% since then.
ACI has missed its long-term guidance on numerous occasions throughout the years, and Starboard was expecting the company to provide a stronger outlook at its recent Analyst Day after declining to pursue a sale.
For further details see:
Why ACI Worldwide Stock Jumped Today