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Activist Jana has a stake in Rapid7. There are two paths to bolster value at the cybersecurity company

·1 min

Rapid7, a cybersecurity company, is expanding its offerings to include cloud security services. The company aims to meet the growing demand for outsourced cybersecurity operations and provide high-quality services to clients. Despite its favorable position in the industry, Rapid7 has delivered negative returns on a one-, three-, and five-year basis. The company’s lower revenue multiple compared to its peers may be attributed to management issues and forecasting uncertainties. The activist investor, Jana, may advocate for changes such as board reconstitution or a potential sale to maximize shareholder value. There could be interest from strategic and financial buyers in the cybersecurity sector.