Commvault, a provider of backup and recovery software, will soon find itself in a proxy battle with Elliott Management, according to people close to the situation.
Elliott is expected to nominate four directors for Commvault‘s 11 member board and is believed to control a position in the company that exceeds 10 percent of its shares, making Elliott the largest holder. The nominating window for Commvault directors closes later this week.
Elliott is said to be frustrated with Commvault’s margins and will wage the proxy fight in an effort to either have management improve margins or have the company sold.
The hedge fund has a long history of taking large positions in small- to mid-cap tech companies and getting them sold to private equity. Commvault, which has top line growth of roughly 9 percent and margins of roughly 10 percent, could easily fit that mold.
Officials at Elliott declined comment.
