Legion Partners Acquires Stake in Five9

By Svea Herbst-Bayliss
NEW YORK (Reuters) – Legion Partners has acquired a stake in Five9 (NASDAQ:FIVN) and is advocating for a board seat and cost reductions, according to two sources familiar with the situation on Tuesday. This marks Legion as the second activist investor to invest in the U.S. call center software firm's stock.

Legion's involvement follows Anson Funds Management’s acquisition of a stake and recommendation for Five9 to consider a sale, reported by Reuters in July.

Apart from seeking one board seat, Legion has called for cost-cutting measures, as informed by the sources. Christopher Kiper leads the firm.

A representative for Five9 refrained from commenting, and Reuters was unable to establish the size of Legion's stake.

Activist interest surged after Zoom Video Communications (NASDAQ:ZM) attempted to acquire Five9 through a $15 billion deal rejected by shareholders in 2021, with another bid made last December that did not result in an agreement.

Five9’s shares have faced significant pressure, trading at $30.41 on Tuesday, down approximately 60% this year. The company currently holds a valuation of $2.3 billion.

Headquartered in San Ramon, California, Five9 specializes in cloud software for call centers, catering to over 3,000 clients and generating $910.5 million in revenue in 2023.

The Anson campaign is led by Sagar Gupta, a former employee of Legion Partners.