Headline: Five9 Targeted by Legion Partners for Cost Cuts and Boardroom Shakeup

Legion Partners Asset Management has acquired a stake in NASDAQ:FIVN (Five9 Inc.), a cloud software provider for call centers, and is pushing for a board seat and cost reductions at the company. This move by Legion Partners follows another activist investor, Anson Funds Management, which had taken a position in Five9 and suggested that the company consider exploring a sale, as reported in July.

The activist firm, led by Christopher Kiper, did not disclose the size of its stake in Five9. However, its involvement comes after NASDAQ:ZM (Zoom Video)'s unsuccessful acquisition attempt; Zoom had made a $15 billion offer to acquire Five9 in 2021, which was rejected by shareholders. Zoom made another offer last December, but the two companies failed to reach an agreement.

Based in San Ramon, California, Five9 serves more than 3,000 clients and reported $910.5 million in revenue for 2023. The company's stock has experienced a significant decline, trading at $30.41 on Tuesday, reflecting a nearly 60% drop this year and giving it a market valuation of $2.3 billion.

A representative for Five9 declined to comment on the matter. Anson Funds Management's campaign is led by Sagar Gupta, who previously worked at Legion Partners. The pressure from these activist investors indicates a push for changes in Five9's operations and governance.