BILL Holdings Inc (NYSE: BILL) shares climbed more than 13% in early trading on Wednesday after Bloomberg reported that the payments and financial automation software company is exploring strategic alternatives, including a potential company sale.
The media outlet noted that Bill is working with a financial advisor to solicit interest from both industry peers and private-equity firms, citing people familiar with the matter.
In early September, activist investor Starboard Value LP disclosed that it had taken an 8.5% ownership stake in Bill Holdings, while publicly pressuring the company to implement operational improvements and governance changes.
Starboard criticized Bill’s slow core revenue growth and sluggish profitability compared with its competitors.
Starboard also released a detailed analysis showing that Bill’s adjusted core earnings before interest, taxes, depreciation, and amortization (EBITDA) margin is 9%, compared with a median of about 29% among its peers.
Bill Holdings and Starboard reached a cooperation agreement in October that added four new independent directors to Bill’s board, including Starboard’s Peter Feld.
BILL Holdings shares have fallen about 37% year to date, giving the company a market capitalization of around $5.3 billion.