Daktronics and Alta Fox Enter into Cooperation Agreement

Rhea-AI Summary

Daktronics (NASDAQ:DAKT) has entered into a cooperation agreement with Alta Fox Capital Management, its largest shareholder. The agreement includes the appointment of Peter Feigin, President of Milwaukee Bucks and Fiserv Forum, to Daktronics' Board of Directors, where he will join the Transformation Committee.

Key terms of the agreement include:

• Daktronics will host an Investor Day in 2025
• Alta Fox will provide input on the search for a new CFO
• Alta Fox agrees to withdraw all litigation against Daktronics
• Alta Fox will support Daktronics' reincorporation to Delaware
• Alta Fox commits to standstill restrictions and voting commitments through the 2027 annual meeting

Positive

• Resolution of litigation with largest shareholder
• Addition of experienced sports/entertainment executive to board
• Improved corporate governance through Delaware reincorporation
• Enhanced investor relations commitment with planned 2025 Investor Day

Negative

• Need to search for new CFO indicates executive turnover
• Significant influence granted to activist investor through board appointment

Insights

Corporate Governance Analyst

This cooperation agreement between Daktronics and Alta Fox represents a significant stabilization of corporate governance that should alleviate investor concerns about ongoing shareholder conflict. The resolution of litigation with the company's largest shareholder removes a substantial distraction for management and creates a more productive environment for strategic execution.

The appointment of Peter Feigin is particularly strategic given his position as President of Milwaukee Bucks and Fiserv Forum arena - directly relevant experience for Daktronics' core business of manufacturing display systems for sports venues. His addition to the Transformation Committee signals a focus on organizational change with input from Alta Fox's perspective.

Several governance enhancements stand out: the reincorporation to Delaware will provide shareholders with the protection of well-established corporate law precedents; the standstill provisions through 2027 create an extended runway for strategy implementation without activist pressure; and the commitment to an Investor Day demonstrates improved transparency. Alta Fox's involvement in the CFO search process suggests a collaborative approach to financial leadership that aligns with shareholder interests.

This agreement effectively creates governance stability through the next two election cycles while incorporating shareholder-friendly changes - a balanced outcome that should allow management to focus on operational execution rather than defensive posturing.

Investor Relations Specialist

This agreement represents a significant positive development in Daktronics' shareholder relations strategy, transforming what appeared to be an adversarial relationship with Alta Fox into a collaborative one. The withdrawal of litigation with prejudice eliminates potential legal costs and management distraction, while establishing a framework for constructive engagement through 2027.

The planned Investor Day in 2025 addresses a key concern for institutional investors - transparent communication about long-term strategy, financial targets, and capital allocation priorities. This commitment indicates the company is evolving its investor relations approach to provide deeper strategic visibility.

Allowing Alta Fox input on the CFO search demonstrates pragmatic governance - acknowledging the largest shareholder's legitimate interest in financial leadership while maintaining board independence in the final decision. This balanced approach represents modern governance that respects significant ownership stakes.

The board appointment brings valuable industry-specific expertise through Feigin's sports and entertainment background, creating potential for strengthened customer relationships in key verticals. His immediate addition to the Transformation Committee suggests Alta Fox's perspective will be incorporated into change initiatives already underway.

This resolution likely satisfies institutional shareholders who prefer operational focus over governance disputes, while maintaining appropriate board independence and management continuity under CEO Reece Kurtenbach.

Daktronics to Appoint Peter Feigin to the Board

Daktronics Confirms Its Commitment to An Investor Day in 2025

Alta Fox to Withdraw Litigation and Support Reincorporation to Delaware

BROOKINGS, S.D., March 03, 2025 (GLOBE NEWSWIRE) -- Daktronics, Inc. (“Daktronics,” the “Company,” “we,” or “us”) (NASDAQ-DAKT), the leading U.S.-based designer and manufacturer of best-in-class dynamic video communication displays and control systems for customers worldwide, today announced it has entered into a cooperation agreement (the “Cooperation Agreement”) with Alta Fox Capital Management, LLC (collectively with certain of its affiliates, “Alta Fox”), which is the Company’s largest shareholder.

Pursuant to the Cooperation Agreement, the Company will appoint Peter Feigin, an Alta Fox-recommended candidate, as a new independent member of its Board of Directors (the “Board”). Mr. Feigin will immediately join the Board’s Transformation Committee. He currently serves as the President of Milwaukee Bucks Inc. (the “Bucks”) and the Fiserv Forum sports arena, brings more than 25 years of sales and marketing experience, including as Chief Marketing and Revenue Officer of Deluxe Entertainment Services Group, an international entertainment company.

Daktronics has also confirmed that it will host an Investor Day in 2025 to provide shareholders with greater insight into the Company’s strategy, financial targets and outlook, and capital allocation framework. In addition, Daktronics will solicit input from Alta Fox on its search for a new Chief Financial Officer.

As part of the Cooperation Agreement, Alta Fox has agreed to withdraw all litigation against the Company with prejudice, support the Company’s reincorporation to Delaware, and adhere to customary standstill restrictions and voting commitments through the Company’s 2027 annual meeting of shareholders.

“The addition of Peter Feigin to the Board will bolster the Company’s efforts to drive long-term value,” said Reece Kurtenbach, Daktronics Chairman, President, and Chief Executive Officer. “We welcome him and look forward to working together.”

Connor Haley, Managing Partner of Alta Fox, added, “It is a win for all of Daktronics’ shareholders and stakeholders to have Peter, a well-known sports and entertainment industry leader, join the Company’s Board. Together with leadership’s governance enhancements and investor relations commitments, his appointment positions Daktronics for long-term success. We are pleased to move forward in a constructive manner and work with the Board and management to enhance value for shareholders.”

A copy of the Cooperation Agreement will be included as an exhibit to the Company’s Current Report on Form 8-K, which will be filed with the U.S. Securities and Exchange Commission (the “SEC”).

About Peter Feigin

Peter Feigin currently serves as the President of the Bucks, an American professional basketball team that won the NBA Championship in 2021, and Fiserv Forum, the Bucks’ arena. Prior to joining the Bucks, Mr. Feigin served as the Chief Marketing and Revenue Officer of Deluxe Entertainment Services Group, a major international entertainment company, from May 2013 to October 2014. Prior to that, Mr. Feigin was the President of Marquis Jet Partners Inc., a leading private aviation company from 2010 to 2011. From 1998 to 2004, Mr. Feigin worked for the New York Knicks in a variety of roles, culminating in a position as the Vice President of Marketing of Madison Square Garden Sports Corp. From 1993 to 1998, he held various sales and marketing positions, including Director of Marketing and Promotions, with Six Flags Theme Parks Inc., which was then a Time Warner company. Mr. Feigin received his B.A. from Franklin & Marshall College.

About Daktronics

Daktronics has strong leadership positions in, and is the world's largest supplier of, large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The Company excels in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation, and video. Daktronics designs, manufactures, markets and services display systems for customers around the world in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, and one International business unit. For more information, visit the Company's website at: www.daktronics.com.

Safe Harbor Statement

Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. These forward-looking statements reflect the Company's expectations or beliefs concerning future events. The Company cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectations, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts and orders, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions, increased regulation, and other risks described in the Company's filings with the SEC, including its Annual Report on Form 10-K for its 2024 fiscal year. Forward-looking statements are made in the context of information available as of the date stated. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

For more information contact:

INVESTOR RELATIONS:
Sheila M. Anderson, Chief Financial Officer
Tel (605) 692-0200
Investor@daktronics.com

Alliance Advisors IR
Carolyn Capaccio / Jody Burfening
DAKTIRTeam@allianceadvisors.com

MEDIA:
Gagnier Communications
Riyaz Lalani / Lindsay Barber
Daktronics@gagnierfc.com

FAQ

What are the key terms of Daktronics' cooperation agreement with Alta Fox Capital?

The agreement includes appointing Peter Feigin to the Board, hosting an Investor Day in 2025, Alta Fox's input on CFO search, withdrawal of litigation, support for Delaware reincorporation, and standstill commitments through 2027.

Who is the new board member appointed to Daktronics (DAKT) and what is his background?

Peter Feigin, President of Milwaukee Bucks and Fiserv Forum, brings 25+ years of sales and marketing experience, including as Chief Marketing and Revenue Officer at Deluxe Entertainment Services Group.

What governance changes is DAKT implementing as part of the Alta Fox agreement?

Daktronics is adding a new independent board member, planning an Investor Day in 2025, seeking Alta Fox's input on CFO selection, and pursuing reincorporation to Delaware.

How long will Alta Fox's standstill restrictions and voting commitments last for DAKT?

Alta Fox's standstill restrictions and voting commitments will remain in effect through Daktronics' 2027 annual meeting of shareholders.