According to sources familiar with the matter, cybersecurity company Rapid7 is close to reaching a settlement with activist investor Jana Partners. Discussions between the two parties have centered around strategies to enhance the company's share price through operational improvements and potentially considering a sale. As part of the proposed agreement, three new members would join the current eight-member board. While an announcement of the settlement could come as soon as Monday, the situation is still subject to change. Jana Partners chose not to provide any comments, and Rapid7 representatives did not respond to requests for comment.

Rapid7, based in Boston, specializes in vulnerability management, offering software tools and services for businesses to evaluate and oversee security risks. The company has faced increased competition amid reduced security spending by corporate clients due to economic uncertainties. Over the past year, Rapid7's stock price has dropped by 41% and is down by 28% this year, resulting in a market value of approximately $1.8 billion.

In March, Jana Partners disclosed ownership of 3.7 million shares, representing a 5.8% stake in Rapid7, as per regulatory filings. Previous reports indicated that Rapid7 was in discussions with investment banks after attracting interest from private equity firms such as Advent, Bain Capital, and EQT for a potential acquisition.

In 2024, activist investors secured 119 board seats at various companies, with settlements accounting for 76% of these wins, based on data from Barclays.