Jun 24, 2025 activistcompany

Kanen Wealth Management increased its stake in Astea International (ATEA)

Key Summary: On September 28, 2018, Kanen Wealth Management (9.1%) raised concerns over ATEA’s capital structure, citing its impact on the balance sheet, earnings, and investor appeal, while recommending a director candidate. It suggested a potential valuation of over $16/share at 3x revenue. By August 2019, Kanen increased its stake to 12.5%.

M.Cap: $18mm | Astea International Inc. develops, markets, and supports service management software solutions worldwide

On September 28, 2018, Kanen Wealth Management (9.1%) delivered a letter to the CEO and Chairman of the Board expressing its concern regarding the company’s current capital structure that resulted in a weakened balance sheet, reduced earnings and also serves as a “repellant” to new investors/prospective ATEA stockholders. It stated that it has identified a director candidate for the Board's consideration for appointment as a Board member

Valuation Insight:

At a multiple of 3x revenue, ATEA could achieve a fully diluted stock price that would be greater than $16 per share.

On August 22, 2019, Kanen Wealth Management increased its stake to 12.5%.

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