RGM Capital Trims Exposure To Sciquest Inc (SQI), Backs Takeover By Accel-KKR

Robert G. Moses, the manager of RGM Capital, has decided to reduce his fund’s exposure to Sciquest Inc (NASDAQ:SQI) as showed a recently amended filing with the Securities and Exchange Commission. Having reported a position comprising 2.68 million shares in its latest 13F filing, the fund now holds 2.26 million shares or 8.12% of Sciquest’s outstanding stock. The fund has also stated its plans to back the company’s proposed merger with Accel-KKR.

bleakstar/Shutterstock.com

bleakstar/Shutterstock.com

A provider of cloud-based business automation solutions, Sciquest Inc (NASDAQ:SQI) stock had been wobbling around without a clear direction up to the end of May, when it was announced that the company reached a deal to sell itself to private-equity firm Accel-KKR for $509 million. Sciquest shareholders are to receive $17.75 per share in cash, which constituted a 34% premium at that time. Several law firms started an investigation into the merger deal on suspicions that the board of directors failed to maximize shareholder valued by not holding out for a higher price. Although the company is not losing money, the profits are marginal. For the first quarter of 2016, Sciquest posted adjusted earnings of $0.09 per share on the back of $26.9 million. By offering such a hefty premium, Accel-KKR signaled its belief that Sciquest’s profitability can be improved.

At the end of the first quarter, roughly 26% of Sciquest Inc (NASDAQ:SQI) was held by 16 of the funds tracked by Insider Monkey, up from 15 registered at the end of December. Michael Murphy and Daniel Donoghue‘s Discovery Group was also betting on this stock, having also increased its stake by 21% during the quarter. According to its latest 13F filing, the fund held 1.79 million shares of Sciquest. Jim Simons‘ Renaissance Technologies has also indicated a 14% increase in its holding of the stock to 783,900 shares.

You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
RGM Capital 0 0 2,258,645 2,258,645 8.12%
Robert G. Moses 0 0 2,258,645 2,258,645 8.12%
Robert G. Moses
Robert G. Moses
RGM Capital

Page 1 of 4 – SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D
(Amendment No. 1)

INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a)
AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a)

SCIQUEST, INC.
————————————————
(Name of Issuer)

Common Stock, $0.001 par value per share
————————————————
(Title of Class of Securities)

80908T101
————————————————
(CUSIP Number)

Robert G. Moses
RGM Capital, LLC
9010 Strada Stell Court
Suite 105
Naples, FL 34109
(239)-593-1280
————————————————
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

June 30, 2016
————————————————
(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 240.13d-1(b)(e), 240.13d-1(f) or
240.13d-1(g) check the following box [ ].

CUSIP NO. 80908T101
—————————————————————————-
1. NAME OF REPORTING PERSON/S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON (entities only)

RGM Capital, LLC
I.D. No. 06-1685711
—————————————————————————–
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [ ]
—————————————————————————–
3. SEC USE ONLY

—————————————————————————–
4. SOURCE OF FUNDS*

WC*
—————————————————————————–
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
—————————————————————————–
6. CITIZENSHIP OR PLACE OF ORGANIZATION

Delaware
—————————————————————————–
7. SOLE VOTING POWER
0
NUMBER OF ———————————————————-
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 2,258,645**
OWNED BY EACH ———————————————————-
PERSON WITH 9. SOLE DISPOSITIVE POWER
0
———————————————————-
10. SHARED DISPOSITIVE POWER
2,258,645**
—————————————————————————–
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

2,258,645**
—————————————————————————–
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
—————————————————————————–
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

8.12%
—————————————————————————–
14. TYPE OF REPORTING PERSON

00 (LLC)
—————————————————————————–
*See Item 3
**See Item 2 and 5

Follow Sciquest Inc (NASDAQ:SQI)