Ramius ups stake in Agilysys to 12.5%, urges sale of assets

By Susanna Moon

Chicago, Oct. 10 - Agilysys, Inc. investors led by Ramius LLC increased their stake in the company by 920,123 shares to 12.5%, according to a schedule 13D filed with the Securities and Exchange Commission.

The investors bought 1,020,123 shares between Sept. 19 and Oct. 8 at prices from $6.93 to $11.9369. They sold 100,000 shares at prices from $11.0864 to $11.4682 on Sept. 15 and Sept. 16.

The investors now beneficially own 2,942,994 shares of the Boca Raton, Fla., IT solutions provider.

Starboard Advisors sent a letter on Friday to the president of the issuer expressing disappointment with the earnings release on Oct. 2.

"We were extremely disappointed with both the timing and content of your earnings pre-announcement, which was filed mid-day on Oct. 2 in the midst of a market swoon that saw the broader stock market indices decline by over 5%," the company wrote in the letter.

Starboard said it believed the company did a disservice by failing to provide an update on its strategic alternatives review.

"In this time of serious market turmoil, letting shareholders know where the strategic evaluation process currently stands is a key factor for any shareholder assessing its investment in the company," the letter continued.

The investor said it believes real structural changes are needed.

"The heavily bloated corporate cost structure, which currently has a run-rate of more than $40 million per year, is significantly impairing consolidated financial performance and therefore further damaging public market valuation," the letter said.

To remedy this, the investor said Agilysys must sell the company, in whole or in part. If sold, the investor said it believes Agilysys could be worth between $10.80 and $17.27 per share.

It was previously reported that Ramius, Parche LLC and Starboard Value and Opportunity Master Fund, Ltd. said they have and will continue to engage in discussions with management and the board of directors of Agilysys.

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