Exclusive-Sachem Head Built Stake In Anaplan, May Push For Changes

Exclusive-Sachem Head Built Stake In Anaplan, May Push For Changes

By Svea Herbst-Bayliss

(Reuters) – Hedge fund Sachem Head Capital Management has taken a stake in Anaplan Inc and may decide to press the business planning software company to make changes, two sources familiar with the matter told Reuters.

The position is said to be comprised of common shares and cash settled swaps, putting Sachem Head’s economic exposure in Anaplan at roughly 9%, the sources said.

A representative for Sachem Head did not immediately respond to a request for comment

San Francisco-headquartered Anaplan is valued at roughly $6 billion and counts a number of prominent hedge funds as well as big mutual funds among its investors.

Nine people, including Chief Executive Frank Calderoni, currently serve on Anaplan’s board of directors. It could not be determined whether Sachem Head, run by Scott Ferguson, has had private discussions with the company.

Anaplan’s stock price has tumbled 33% over the last two years while the technology-oriented Nasdaq index climbed 43% between February 2020 and now.

Sachem Head invests roughly $5 billion and last year gained 24%, beating the average activist investment firm’s returns.

The New York-based firm has a history of pushing for changes, and Ferguson currently has seats on the boards of chemical products maker Olin Corp and pharmaceutical company Elanco Animal Health Inc. Sachem Head traditionally invests in roughly two dozen companies.

Sachem Head is currently trying to take control of US Foods Holding Corp’s 10-member board and has nominated seven director candidates, including Ferguson.

News last month that software company Citrix Systems had agreed to be taken private for $16.5 billion including debt by affiliates of hedge fund Elliott Management and private equity firm Vista Equity Partners, has sparked talk that similar deals could be negotiated in the future.

(Reporting by Svea Herbst-Bayliss; Editing by Leslie Adler)