2717 Partners calls on Logility board to conduct strategic alternatives review

2717 Partners, a significant shareholder of Logility (LGTY) Supply Chain Solutions, sent a letter to the Company’s Board of Directors calling for it to explore strategic alternatives, including a sale of Logility. The firm said, in part, “We are writing to the Board of Directors of Logility Supply Chain Solutions with the hope of working constructively with you to do just that. As a significant shareholder of Logility, we have strong conviction in the Company. Indeed, Logility was one of the first investments 2717 executed following our launch. We invested in the Company because we believed Logility had tremendous upside potential that we could help management and the Board unlock. Further, management had made several strategic decisions over the prior two years that we hoped would be a net positive and consistent with a long-term value creation plan, including removing the controlling shareholder structure, pursuing a divestment of the corporate headquarters, divesting The Proven Method, re-branding, expanding and investing in system integrator relationships, and pursuing tuck-in M&A. Unfortunately, however, these decisions have not instilled confidence in the public markets. Instead, there remains a gap between Logility’s current valuation and its intrinsic value…The market has spoken. As fiduciaries to Logility shareholders – including pension funds, college savings plans, and 401(k)s of hard-working Americans – the Board must immediately form a special committee of independent directors and hire an investment bank to explore strategic alternatives, including a sale of Logility, to maximize the value of shareholders’ investments…We believe the Board and management have been given enough time to realize success for the Company and its stakeholders-now, it is time for change. We call on the Board to form a special committee of independent directors and to retain an investment bank to explore strategic alternatives, including a sale of Logility. We hope that the Board sees our perspective and is open to engaging with us on this topic.”