Jana Partners Accuses Alkami of Mishandling Sale Process, Cites Blocked Bids

Activist investor Jana Partners has escalated its campaign at Alkami Technology Inc. (ALKT), accusing the fintech company's board of conducting an improper sale process, according to a letter cited by Bloomberg on Friday.

Jana's Allegations

In the letter to Alkami's board, Jana Managing Partner Scott Ostfeld stated that the activist firm has communicated with multiple potential buyers who were previously interested in acquiring Alkami. These parties reportedly indicated their interest was met with a "lack of engagement and unrealistic value expectations" from the company, effectively blocking a potential deal.

Jana argues that recent private market transactions highlight a significant disparity between public and private company valuations, suggesting Alkami could achieve a higher price through a formal sale.

Demands and Market Context

The activist firm, which has amassed an economic stake of more than 10% in Alkami, is urging the board to initiate a formal sale process. Jana insists this process must be based on "realistic expectations" and be supervised by the entire board.

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This follows Jana's initial push in June, when it urged the company to engage with multiple strategic and financial suitors. According to a person familiar with the matter, the activist is also seeking changes to the leadership of Alkami's board.

Investor Implications

The public pressure from a significant shareholder like Jana often forces a company's board to re-evaluate its strategic direction, including a potential sale. For investors, this activist campaign introduces the possibility of a merger or acquisition, which could unlock value for shareholders.

The Plano, Texas-based company has seen its stock performance lag, with shares declining approximately 23% in New York this year. Such underperformance can make a company a target for activists who see an opportunity for strategic changes to improve shareholder returns.