Activist hedge fund buys 5.9% stake in Perspecta

Jana Partners LLC bought 9.4M shares of Chantilly-based firm's stock

Published June 15, 2020 by Sydney Lake

New York City-based activist hedge fund Jana Partners LLC has acquired 5.9% (9.4 million shares) of the stock of Chantilly-based government contractor Perspecta, according to U.S. Securities and Exchange Commission documentation.

According to a Reuters report, Jana Partners is expected to encourage Perspecta to pursue a sale or merger. Jana intends to push Perspecta stock prices up, saying that “shares are undervalued and represent an attractive investment opportunity.” 

“[Jana Partners] may have discussions with members of [Perspecta’s] board of directors and management team regarding maximizing value for shareholders, including discussing industry consolidation, capitalization, capital allocation, operations and board composition,” the SEC filing reads.

Perspecta’s stock jumped 19% on Friday, according to New York Stock Exchange data — after the news about Jana Partners investment was announced.

Perspecta employs more than 14,000 workers and won several big federal contracts last year, including an $824 million, five-year deal with the National Geospatial Intelligence Agency and a $657 million extension on its Next Generation Enterprise Services (NGEN) contract to continue IT services for the U.S. Department of the Navy. Its market capitalization is approximately $3.9 billion.

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