Long Term Returns of Paul Singer’s 5 Activist Targets

3. Commvault Systems, Inc. (NASDAQ:CVLT)

Activist Investment: 2018
Long-Term Returns Since Singer’s Investment: 68%
S&P 500 Gain Since Singer’s Investment: 31%

Commvault Systems, Inc. (NASDAQ:CVLT) provides a data protection platform that helps customers secure, defend, and recover data. It offers Commvault Backup and Recovery, a backup and recovery solution. Elliot Management first disclosed a 10.3% stake in the company in 2018. The activist investor also announced plans to nominate four directors of the company’s 11-member board, consequently triggering a proxy battle.

 The activist investor echoed its frustration with Commvault Systems, Inc. (NASDAQ:CVLT)’s dwindling margins and insisted management changes were crucial. In addition to pushing for management changes, the activist investor wanted management to consider a potential business sale.

“We are optimistic that we can work together with the Board to reach a collaborative agreement that will be in the best interests of the Company and its shareholders,” Elliott wrote in the letter to Commvault’s board.

Management bowed to the activist pressure and agreed to appoint three new independent directors to the board. It also agreed to launch a $200 million share repurchase program and implemented a cost reduction plan.

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