Supply Chain Matters provides an update to our previous posting regarding the announced senior leadership transition that occurred in B2B supply chain platform provider E2open Holdings.
A published report from Bloomberg (Paid subscription required) indicates that activist hedge fund Eliott Management “is considering making a proposal to take supply-chain-software company E2open Parent Holdings Inc. private, according to people familiar with the matter.”
The private equity firm, that reportedly holds a 14 percent stake, in a securities filing on Monday had converted its equity position to active from passive. Reportedly, Eliott participated in the original buyout of E2open in 2015.
According to this Bloomberg report, the firm indicated that E2open stock “is undervalued and it will seek to engage with the company’s board and management about strategic opportunities to maximize shareholder value.”
This report cautions that the hedge fund is evaluating its next steps and that the sources are asking not to be identified because the matter is private. “Deliberations are at an early stage and Elliot could still decide against pursuing a buyout.” None the less, the Bloomberg report is now public.
After this supply chain platform provider reported its Fiscal Q2 2024 financial performance in conjunction with the CEO change announcement, the stock of the tech provider plummeted by a reported 50 percent to an all-time low. The company’s stock then rose 22 percent on Monday trading, reportedly a market value of $904 million.
Reportedly, E2open management did not immediately respond to a request for comment by Bloomberg.
Obviously, events regarding E2open are to state the least, fluid, and associated customers and technology stakeholders should stay up to date with ongoing developments. If the tech provider is taken private, it would represent a full circle move in that E2open was once private before moving to a bank check merger in 2021.
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