Exclusive-Activist investor Jana Partners built stake in Alkami Technology in Q3, sources say

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By Svea Herbst-Bayliss

NEW YORK (Reuters) -Activist investor Jana Partners built a new stake in U.S. banking technology company Alkami Technology during the third quarter, three people familiar with the matter told Reuters.

By building the position, the hedge fund is signaling its interest in the company and that it has committed significant resources. Some activist investors have been pushing their target companies to consider strategic alternatives, including a sale, and there has been interest among buyers in the financial technology space in which Alkami operates.

THE DETAILS

* Alkami Technology offers cloud-based digital bankingsolutions that can be used to open accounts, fraud protectionand data analytics. * The size of Jana’s stake could not be determined.  * It is unclear whether Jana will press for changes or whatits requests may be. * The stake may be confirmed later on Friday when Jana filesits quarterly 13-F filing, which shows what assets managers heldin U.S. stocks at the end of the previous quarter. * A representative for Jana declined to comment while AlkamiTechnology could not be immediately reached for comment.

THE NUMBERS

* Plano, Texas-headquartered Alkami has a market value ofroughly $2 billion. * Its shares have fallen 46% over the last 12 months andtraded at nearly $20 on Friday. * The stock price tumbled after Alkami paid to acquireaccount opening solution provider MANTL, saw growth deceleratein the second quarter and cut revenue guidance in the thirdquarter. * Wall Street analysts, who believe in the company’sproducts, have assigned a median price target of $32.56, apremium of roughly 60% on its current stock price.

THE BACKGROUND

* Alkami investor General Atlantic, which owns 11% of thecompany and has a seat on the board, made an updated regulatoryfiling in August, switching from a passive ownership position toan active one. * General Atlantic’s August filing says it plans to seekchange or influence control at Alkami, including through apossible strategic transaction. * Buyers have been interested in the financial technologyspace, with Centerbridge announcing a $2 billion acquisition ofMeridianLink in August. * Jana has successfully pushed for changes at companies inthe space. New Relic, in which Jana won board seats in asettlement, was acquired by TPG and Francisco Partners, andFrontier Communications Corp., in which Jana called for a sale,is being acquired by Verizon Communications.

(Reporting by Svea Herbst-BaylissEditing by Dawn Kopecki and Rod Nickel)