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Feb 6 (Reuters) - Advisory Board Co said it would explore strategic alternatives, including a sale of part or the entire company, weeks after activist investor Elliott Associates LP said the healthcare IT company's stock was "significantly undervalued".
On Jan. 12, Elliott Associates LP, a unit of activist hedge fund Elliott Management Corp, disclosed an 8.3 percent stake in the company.
The activist investor - which holds the biggest stake in the company, according to Thomson Reuters data - said in a regulatory filing it would seek to engage with the company's board over "opportunities to maximize shareholder value".
Earlier in January, Advisory Board said it would cut 220 jobs, or 5.7 percent of its total workforce. It had warned of lower revenue growth in 2016 due to significantly reduced IT spending following the U.S. presidential election.
Shares of the company, which provides research and software tools as well as consulting services to healthcare and education companies, have risen 44 percent since the job-cut announcement.
Goldman, Sachs & Co and Allen & Company LLC are acting as financial advisers to the company, while Skadden, Arps, Slate, Meagher & Flom LLC are acting as its legal advisers.
Trading in the shares of Advisory Board, which has a market value of $1.89 billion, were halted on Monday. (Reporting by Divya Grover in Bengaluru; Editing by Shounak Dasgupta)