More BlackLine investors push company to explore sale

Several investors in accounting software provider BlackLine Inc. are pushing the company to explore a potential sale following reported takeover interest by SAP SE, according to people familiar with the matter.

Ananym Capital Management and Tensile Capital Management have sent letters to BlackLine’s board, the people said, asking not to be identified because the information is private. Chicago-based Sheffield Asset Management has also been communicating with the board about its views on a potential sale, they said. 

Another Top 10 shareholder has told the board that the company should pursue a sale, the people added.

The shareholders’ concerns are coming to light after activist investor Engaged Capital said in a letter last week that BlackLine should pursue a sale to SAP or other potential suitors.

“We are obviously aware about the recent market commentary about BlackLine,” Owen Ryan, the company’s chief executive officer, said during a conference call Thursday. “The board and management team engage with shareholders routinely and continue to do so.”

Representatives for Ananym, Tensile and Sheffield didn’t immediately respond to requests for comment.

BlackLine had rejected a takeover approach by SAP earlier this year that valued the Woodland Hills, California-based company in the high $60s per share, Bloomberg News previously reported.

Shares of BlackLine, which have fallen 6.5% this year, closed at $56.82 in New York trading Thursday, giving the company a market value of about $3.5 billion. The stock sank as much as 8.5% in late trading after BlackLine cut its guidance for adjusted earnings per share for the full year.

Charlie Penner, who was at Jana Partners earlier in his career, started Ananym last year after working at Engine No. 1, where he had spearheaded a campaign against Exxon Mobil Corp. 

Tensile focuses on eight to 12 core positions in public companies, along with selective private investments, according to its website.