Daktronics (DAKT) and Alta Fox Enter into Cooperation Agreement
Key Summary: Alta Fox Capital (11.7%) has criticized Daktronics’ governance and underperformance, citing nepotism and poor leadership under the Kurtenbach family. Following earlier agreements in 2023, Alta Fox’s December 2024 presentation at the Bloomberg Activism Forum proposed reforms to unlock shareholder value, including governance modernization, operational improvements, and independent board appointments. On January 31, 2025, Alta Fox Capital filed proxy materials urging shareholders to vote "AGAINST" the Company's proposal to reincorporate from South Dakota to Delaware at a special meeting. On March 3, 2025, the company announced a cooperation agreement with Alta Fox Capital Management.
Market Cap: $606 million | Daktronics, Inc. designs, manufactures, markets, and sells electronic display systems and related products worldwide.
- On January 26, 2023, Alta Fox Capital (5.8%) issued a press release and public letter to the Board expressing its disappointment that the Board’s Strategy and Financing Review Committee is not taking decisive action to address deep-rooted issues related to the company’s corporate governance, undermanagement team and value creation efforts.
- On March 19, 2023, the company entered into a Standstill and Voting Agreement with Alta Fox Capital and Connor Haley (collectively, the “Investor Parties”) in connection with ongoing negotiations between the company and the Investor Parties regarding a potential financing transaction. Source
- On December 10, 2024, Alta Fox Capital (11.7%) released a presentation at the Bloomberg Activism Forum 2024, highlighting governance issues and underperformance under the Kurtenbach family's leadership. The presentation exposes nepotism, ineffective governance, and poor financial stewardship that have resulted in 195% underperformance versus the S&P 500. Alta Fox proposes a path to unlock shareholder value, targeting ~$40 per share through governance reforms, board refreshment, operational improvements, and accountability measures, including nominating independent director candidates and modernizing practices. The full presentation is available at www.FixDaktronics.com.
- On January 31, 2025, Alta Fox Capital filed proxy materials urging shareholders to vote “AGAINST” the Company’s proposals related to the reincorporation of the Company from the State of South Dakota to the State of Delaware (the “Reincorporation”) at a special meeting of shareholders. Source
- On February 5, 2025, Alta Fox Capital filed a lawsuit against Daktronics and its CEO, Reece Kurtenbach, over the company’s proposal to reincorporate in Delaware and eliminate cumulative voting. Alta Fox argues that this move is a reactionary tactic to protect underperforming directors and deflect from shareholder demands to declassify the board. Source
- On March 3, 2025, the company announced a cooperation agreement with Alta Fox Capital Management. Under this agreement, Peter Feigin, an Alta Fox-recommended candidate, will join the Board of Directors as a new independent member. Daktronics will also seek Alta Fox's input in its search for a new Chief Financial Officer. As part of the agreement, Alta Fox will withdraw all litigation against the Company, support its reincorporation to Delaware, and adhere to standard standstill restrictions and voting commitments until the Company's 2027 annual meeting of shareholders.
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