NEW YORK, March 24 (Reuters) - Cybersecurity company

Rapid7 ( RPD ) on Monday said it has reached an agreement with

activist investor Jana Partners to add three new directors to

its board, including one of the hedge fund's partners.

The Boston-based company named Wael Mohamed, Mike Burns and

Kevin Galligan as new directors. Its board currently has eight

members.

Rapid7 ( RPD ) CEO Corey Thomas said the newcomers, who bring

expertise in digital transformation, finance and operations and

an investor's view, will "help us sharpen our strategy,

strengthen execution and drive greater value creation for our

shareholders."

Jana managing partner Scott Ostfeld called the engagement

with the company "highly constructive" and said "we are

encouraged by the steps Rapid7 ( RPD ) is taking to enhance its

leadership and execution capabilities."

Reuters reported on Sunday that the two sides were nearing

a settlement to add three directors to the board after Jana and

Rapid7 ( RPD ) had discussed ways to boost the share price by improving

operations and exploring a sale.

Boston-based Rapid7 ( RPD ) specializes in so-called vulnerability

management, providing software tools and services that help

businesses assess and monitor security risks. The company has

been forced to compete harder for business as corporate clients

cut back on security spending due to broader economic

uncertainty.

The company's stock price has tumbled 41% in the last 52

weeks and is down 28% this year, shrinking its market value to

roughly $1.8 billion.

Jana owned 3.7 million shares, or a 5.8% stake in the

company, according to a regulatory filing in March, LSEG data

show.

Reuters reported in October that Rapid7 ( RPD ) was exploring

options with investment bankers after attracting acquisition

interest from buyout firms, including Advent, Bain Capital and

EQT.