Boingo Reaches Deal With Ides to Add Three Directors
June 01 2016 - 11:00AM
Dow Jones News
Boingo Wireless Inc. said it named three new independent
directors to its board, putting an end to the proxy fight launched
earlier this year by hedge fund Ides Capital Management LLC.
The company said it would appoint Maury Austin and David Cutrer
to the board effective immediately, with Kathleen Misunas joining
the board following the company's annual shareholder meeting on
June 9.
The moves will expand Boingo's board from six members to
nine.
As part of an agreement between the activist investor and the
wireless-service provider, Ides agreed to withdraw the two nominees
it put forward in March. Legion Partners Asset Management, LLC also
agreed to support Boingo's nominees and both firms said they would
not seek a proxy fight through next year's annual shareholder
meeting.
Ides holds a 0.4% stake in the company, according to Boingo.
In May, Ides said it believed Boingo was "materially undervalued
and that a better-run, more profitable and more transparent Boingo
could result in a share price that is as much as 100% higher than
the current share price." The hedge fund sent a letter to Boingo's
stockholders, asking them to support its two nominees to Boingo's
board.
Ides, which pushes for board diversity, is run by its chief
investment officer, Dianne McKeever. On Wednesday, Ms. McKeever
called the agreement with Boingo a "collaborative solution," and
said the additions "will provide important fresh voices and
perspectives."
Boingo Chairman and Chief Executive David Hagan said the new
directors would "bring relevant perspectives and expertise in areas
essential to our business, including finance, wireless, technology
and corporate governance, and we look forward to benefiting from
their insights."
Mr. Austin is a director at Extreme Networks, where he has
served since 2012, and has previously served as chief financial
officer for several technology companies. Mr. Cutrer is chief
executive of Kumu Networks, a wireless technology firm, and was
previously a consultant for telecommunication companies. He also
served as the co-founder and chief technology officer at NextG
Networks from 2001 until 2012, when the company was sold to Crown
Castle International Corp.
Ms. Misunas is a director at Tech Data Corp., and has previously
served in director roles at companies such as Travelocity.com and
the American Airlines Credit Union.
Boingo provides Wi-Fi service at airports, military bases and
other hot spots.
Shares, up 11% so far this year, declined 0.9% to $7.34 in early
trading in New York.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
June 01, 2016 10:45 ET (14:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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