With pressure from shareholders, Epiq Systems hires financial adviser

Epiq Systems Inc., whose two largest shareholders are pushing for a sale or reorganization, on Friday said it had hired Credit Suisse Securities to advise its board on possible strategic and financial options.

The Kansas City, Kan., provider of software for the legal industry disclosed last month that it had rejected a $20-a-share takeover offer from P2 Capital Partners LLC, a New York hedge fund that is now its largest shareholder with nearly 17 percent of the shares.

The company’s second-biggest shareholder, St. Denis J. Villere & Co. of New Orleans, also recently called for Epiq to consider strategic alternatives for the company including taking it private. The investment firm owns about 16.2 percent of Epiq.

On Sept. 18, Epiq said it was exploring a range of strategic options, including acquisitions, divestitures or going private. The company also adopted a poison pill to discourage unfriendly takeover bids.

Epiq said Friday it would also consider adding more independent directors to its board, following the appointment in August of Douglas Gaston as an outside director. Gaston recently retired as regional managing partner for the BKD LLP accounting and advisory firm.

Peter Heckmann, an analyst and managing director of Avondale Partners, said in a research note Friday that “a win-win scenario has developed for shareholders with management under significant pressure to deliver better results near-term and convince investors that they finally have the pieces in place to deliver attractive returns.”

This story was originally published October 3, 2014 at 10:15 AM with the headline "With pressure from shareholders, Epiq Systems hires financial adviser."