Activist investor Fivespan builds 5.1% stake in software firm BlackLine

By Svea Herbst-Bayliss

NEW YORK, March 13 (Reuters) - Activist investor Fivespan Partners said in a regulatory filing that it now owns 5.1% of BlackLine Systems BL.O at a time pressure is building on the enterprise software company to review options, including a possible sale.

The San Francisco-headquartered investment firm reported the stake in a so-called 13-D filing which was made late on Thursday and is required when an investor crosses the 5% ownership threshold and intends to push for changes.

• BlackLine's stock has dropped 32% this year, valuing the company at $2.16 billion.

• Fivespan used this year's sell-off to buy more stock, said a person familiar with the firm's trading.

• The industry-wide sell-off related to growing fears of AI disruption.

• In the filing, Fivespan said it would talk to directors and management about an array of topics, including M&A and overall business strategy.

• A Fivespan representative declined to comment beyond the filing.

• On Tuesday BlackLine agreed with activist investors Engaged Capital that two new directors would join the board and that the newcomer proposed by Engaged would be on the strategic committee.

• The strategic committee is empowered to lay the groundwork for a potential merger or sale of the company.