Legion Partners Comments on Reports of Nutanix's Sale Process
Legion Partners Asset Management, LLC, together with its affiliates (collectively, "we" or "Legion Partners"), a significant stockholder of Nutanix (the "Company") (NASDAQ: NTNX), today commented on recent media reports that Nutanix has received interest from potential acquirers and is exploring a sale:
"Our recently disclosed engagement with Nutanix and the associated discussions around its business only served to reinforce our conviction that the Company's trading price has for some time not appropriately reflected its full value. Nutanix should be valued at a multiple appropriate for the high-growth and high-quality enterprise subscription software company that it is, not like the hardware stock it has been recently valued as. As such, we are encouraged by the reports today that the Company has received interest from third parties and believe that, in light of this, the Board must properly evaluate alternatives including all potential partners.
Given Nutanix's unique position and current industry dynamics, in our view, a strategic buyer would be the ideal partner for the Company. We encourage the Board to fully explore all options in order to achieve the best outcome for all stockholders and we will be observing the process closely."
About Legion Partners
Legion Partners is an activist investment manager based in Los Angeles, CA, focused on U.S. small-cap companies. Legion seeks to generate attractive long-term returns employing deep fundamental research, a concentrated portfolio and responsible, collaborative engagement as a catalyst for value creation. Founded in 2012, Legion takes a value-driven approach to managing a high-conviction portfolio on behalf of sophisticated institutional and individual investors. Learn more at www.legionpartners.com.
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