By Milana Vinn
NEW YORK (Reuters) -OneSpan Inc, a U.S. cybersecurity tools vendor that has become the target of activist hedge funds such as Legion Partners Asset Management, is exploring options that include a sale of the company, people familiar with the matter said.
OneSpan is working with investment bank Evercore Inc on a sale process that could attract interest from other companies and private equity firms, the sources said, requesting anonymity because the discussions are confidential.
OneSpan shares rose over 11% on the news in afternoon trade to $18.43 a share.
OneSpan, which has a market value of close to $700 million, and Evercore declined to comment.
Based in Chicago, OneSpan develops identity management software solutions that help secure electronic transactions. The company’s offerings include its e-signature signature product OneSpan Sign, which competes with products offered by Adobe Inc and DocuSign Inc.
In 2021, Legion, which has been a OneSpan shareholder since 2018, launched a board challenge to pressure the company to implement operational changes and explore asset divestitures. OneSpan then cut a deal with Legion that added two of the hedge fund’s director nominees to its board.
Other activist hedge funds including Ancora Advisors and Altai Capital have also taken positions OneSpan’s stock.
(Reporting by Milana Vinn in New York)
