Cybersecurity firm Rapid7 announced on Monday its agreement with activist investor Jana Partners to appoint three new directors to its board, one being a partner from Jana Partners. The new directors named by the Boston-based company are Wael Mohamed, Mike Burns, and Kevin Galligan, adding to the existing eight-member board.

Rapid7 CEO Corey Thomas stated that the new directors, bringing expertise in digital transformation, finance, operations, and an investor's perspective, will assist in refining the company's strategy, enhancing execution, and increasing shareholder value.

Jana Partners' managing partner, Scott Ostfeld, described the engagement with Rapid7 as productive, expressing support for the company's actions to bolster leadership and operational capabilities. Discussions between Jana and Rapid7 focused on strategies to improve operations and potentially consider a sale to boost the company's share price.

Rapid7, which specializes in vulnerability management services for assessing and monitoring security risks, faces intensified competition in the security sector due to reduced spending by corporate clients amid economic uncertainties. The company's stock has experienced a significant decline, dropping 41% in the last 52 weeks and 28% this year, reducing its market value to about $1.8 billion.

Jana Partners disclosed owning a 5.8% stake, equivalent to 3.7 million shares, in Rapid7 according to a regulatory filing in March. Reports indicated that Rapid7 had attracted interest from buyout firms like Advent, Bain Capital, and EQT, prompting the company to explore options with investment bankers.