NEW YORK Two activist hedge funds are pressing directors of Tangoe Inc. (TNGO.PK) to sell the company, according to people familiar with the matter, citing a weakness in the IT company's business and falling stock price.
Ancora Advisors and Engine Capital sent a letter to the company's board of directors last week urging the company to resist the temptation to remain independent, and to do everything possible to seek a buyer, sources said. Ancora, Engine and a third investor are working as an investor group, and own more than 4 percent of the company, sources said.
The identity of the third investor was not immediately clear.
Tangoe, based in Orange, Connecticut, listed on the Nasdaq in 2011, trading at $10 per share. Its rivals at the time were U.S. billing firm CSG Systems and Amdocs, makers of phone-billing and customer-management software. Tangoe's stock is currently trading at $5.04 per share and its market value is around $200 million.
The company could not immediately be reached for comment.
(Reporting by Michael Flaherty; Editing by Chizu Nomiyama)