Rapid7 (RPD) Activist Investor Seeks Strategic Alternatives: Unlocking Hidden Value
Published: 13 June 2025 | By Portugal
Activist Stake
Elliott Management disclosed a 9.2% stake, urging the board to explore a sale or divestiture of non‑core assets.
Strategic Options
Financial Snapshot
Peer Comparison
RPD trades at 3.2x sales vs. S (9x) and CRWD (15x). Take‑out premium could be 40%+.
Market Reaction
Stock soared 18% on the news, highest volume since IPO.
Risks
Investment View
With activist pressure and attractive valuation, RPD offers event‑driven upside.
Source: CNBC, 12 June 2025. Summary: Elliott Management took 9.2% stake in Rapid7, urging strategic review.
Published: 13 June 2025 | By Portugal
Activist Stake
Elliott Management disclosed a 9.2% stake, urging the board to explore a sale or divestiture of non‑core assets.
Strategic Options
- Sale to private equity at 4.5x sales (~$80 per share).
- Spin‑off of cloud SIEM unit “InsightCloudSec”.
- Aggressive cost‑cutting to reach 20% EBITDA margin.
Financial Snapshot
- Q1 revenue: $220M (+15% YoY).
- ARR: $1.1B.
- Cash: $400M; Debt: $600M.
Peer Comparison
RPD trades at 3.2x sales vs. S (9x) and CRWD (15x). Take‑out premium could be 40%+.
Market Reaction
Stock soared 18% on the news, highest volume since IPO.
Risks
- Execution risk if no buyer emerges.
- Potential shareholder dilution from restructuring.
Investment View
With activist pressure and attractive valuation, RPD offers event‑driven upside.
Source: CNBC, 12 June 2025. Summary: Elliott Management took 9.2% stake in Rapid7, urging strategic review.