Bill Holdings stock surged by more than 13% in premarket U.S. trading on Wednesday following media reports that the financial software provider is exploring strategic options, including a potential sale.
The San Jose, California-based company, which provides cloud-based financial automation software, is reportedly working with a financial advisor to gauge interest from larger industry competitors and private equity firms, according to people familiar with the matter cited by Bloomberg News and Reuters.
The exploration comes amid pressure from activist investor Starboard Value LP, which disclosed an 8.5% stake in Bill Holdings in early September. Starboard has been pushing for operational and governance changes at the company, criticizing its stagnant core revenue growth and below-peer profitability margins.