Epiq Systems Inc., battling unhappy shareholder groups, has received buyout offers from two bidders, according to an unconfirmed report.
Reuters did not cite its sources in a report that Xerox and DTI Global had offered between $14 and $16 a share for the Kansas City, Kan.-based Epiq.
Shares of Epiq gained $1.37, or nearly 12 percent, to close at $13.00 Monday.
In an emailed statement, Epiq acknowledged its ongoing strategic review but declined to “comment on rumor or speculation regarding this process.”
“Epiq and its board of directors, including its strategic alternatives committee, has and continues to engage in an active, robust and thorough review of the company’s strategic and financial alternatives for the purpose of maximizing value for all of Epiq’s shareholders,” the email said.
Peter Heckmann, an analyst for Avondale Partners, said both companies named in the Reuters report are in the e-discovery business that Epiq engages in.
Epiq, however, had turned down a $20 a share offer from one of its large shareholders, an investment group called P2 Capital Partners.
Heckmann said it would be unlikely that management or the board would accept a lower price cited in the Reuters report.
“Management wants to remain independent and is not looking to sell the company, period,” Heckmann said.
The offer from P2 Capital and pressure from other shareholders led to the strategic review that began more than a year ago. Epiq also had reached a standstill agreement with a New Orleans-based investor group, but the group ultimately said it would challenge for control of Epiq’s board of directors and sued the company.
Earlier this month, Epiq said two of its directors would leave its board and two new members would join it. The new members include Paul Gorup, a co-founder of Cerner Corp. based in North Kansas City.
Epiq will report its fourth quarter and annual financial results on March 1. Heckmann said investors will be looking for an update on the strategic review as well as the company’s outlook for its 2016 performance.