NEW YORK, June 26 (Reuters) -

Jana Partners, the activist investor that has successfully

pushed for the sale of multiple companies, has built a stake in

Rapid7 ( RPD ) and is urging the cybersecurity company to sell itself, a

person familiar with the matter said on Wednesday.

The news of Jana's stake comes months after Reuters reported

in 2023 that the Boston-headquartered company was exploring

options that included a possible sale.

News of Jana's involvement, first reported by the Wall

Street Journal, pushed Rapid7's ( RPD ) stock price up more than 8% in

midday trading on Wednesday. Jana Partners managing partner and

portfolio manager Scott Ostfeld discussed the investment at an

investment conference in Monaco.

Since January, the stock price has tumbled 25%.

Besides urging a sale, Jana is also pushing the company to

improve operations and forecasting. It recently reduced its 2024

outlook.

Rapid7 ( RPD ) specializes in so-called vulnerability management,

providing software tools and services that help businesses

assess and monitor security risks. It has been forced to compete

harder for its business as corporate clients cut down on

spending.

The hedge fund is working with Cannae Holdings ( CNNE ), a

publicly traded holding company, and the idea would be for

Cannae to partner with a private equity firm to buy Rapid7 ( RPD ).

Jana previously pushed for a sale of New Relic which was

taken private by TPG and Francisco Partners last year. It also

pushed for a sale of Zendesk which was taken private in 2022 by

investment firms led by Hellman & Friedman and Permira.