Legion Partners Comments on Reports of Nutanix’s Sale Process

Rhea-AI Summary

Legion Partners Asset Management, a significant shareholder of Nutanix (NASDAQ: NTNX), comments on recent reports of potential acquisition interest in the company. They assert that Nutanix's stock price does not reflect its true value as a high-growth enterprise software firm. Legion Partners urges the Board to explore all strategic options, especially involving potential acquirers, to maximize shareholder value. This engagement suggests a belief in Nutanix's unique market position and the necessity for a thorough evaluation of partnership opportunities.

Positive

• Recent reports of acquisition interest indicate potential value recognition for Nutanix.
• Legion Partners emphasizes Nutanix's strong position as a high-growth software company.

Negative

• Current stock price undervalues Nutanix compared to its software industry peers.
• Pressure from significant shareholders may indicate underlying concerns about management's strategy.

Believes Reported Interest Reinforces that Nutanix’s Long-term Value Has Not Been Reflected in its Recent Stock Price

Encourages Board to Fully Explore All Potential Options – Particularly with Strategic Buyers – in Order to Achieve Best Outcome for All Stockholders

LOS ANGELES--(BUSINESS WIRE)-- 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221014005412/en/

Media Contact:

Longacre Square Partners

Dan Zacchei / Joe Germani

dzacchei@longacresquare.com / jgermani@longacresquare.com

Source: Legion Partners Asset Management, LLC

FAQ

What recent developments have occurred regarding Nutanix (NTNX) and acquisition interest?

Legion Partners has commented on reports of potential buyers for Nutanix, advocating for an evaluation of strategic alternatives.

How does Legion Partners view Nutanix’s stock valuation?

Legion Partners believes that Nutanix’s trading price does not reflect its full value as a high-growth software company.

What actions does Legion Partners recommend for Nutanix's Board?

They recommend that the Board explore all potential options, particularly strategic buyers, to maximize shareholder outcomes.