Irenic Capital Management has built a 2% stake in Workiva, urging operational improvements, board refreshment, and potential sale considerations. The hedge fund seeks to review strategic alternatives with fresh board oversight, capitalizing on private equity interest in financial software companies, potentially nominating directors if no agreement is reached.

Workiva stock dropped 5.2% after investor concerns over profitability commitment and go-to-market efficiency. The company supplies financial reporting tools to Fortune 500 companies like Coca-Cola and Chevron. CEO Julie Iskow’s tenure has seen a 19% stock decline, prompting frustration from Irenic due to a 27% discount compared to rivals like Workday.

Irenic targets long-serving directors at Workiva, sending letters outlining governance concerns and proposed improvements. The hedge fund notes five of seven directors have been on the board since 2014. Founded by former Elliott Investment Management and Indaba Capital Management executives, Irenic has experience in private company transitions and activist engagements.

Read more at Yahoo Finance: Exclusive-Activist Irenic builds stake in Workiva, pushes for board seats