Jana Partners disclosed a Schedule 13D filing on Alkami Technology on June 29, taking a stake north of 9.9% and immediately signaling intent to explore strategic alternatives including a sale. The filing names no acquirer but points to Alkami's 40.83% projected five-year EPS growth and a trailing $1.1 billion market cap trading at roughly 4.2x forward revenue—a 30-40% discount to vertical SaaS peers with similar EBITDA margins.
Alkami provides digital banking software to 270+ community and regional banks across the United States, processing roughly $2.1 trillion in deposit balances. Revenue grew 21% year-over-year in the most recent quarter, with gross retention above 98% and net dollar retention at 112%. The company turned adjusted EBITDA positive in fiscal 2023 and has guided to 18-20% revenue growth for 2024. Jana's filing emphasizes the durability of contracted ARR and the relative scarcity of pure-play digital banking platforms at scale.
The activist's timing aligns with two inflection points. First, regional bank technology budgets have stabilized post-SVB collapse, with compliance and customer retention now forcing laggards to accelerate cloud migration. Second, Oracle, FIS, and Temenos have each made vertical banking acquisitions in the past 18 months, paying 6-8x forward revenue for assets with comparable growth profiles but weaker retention metrics. Alkami's locked-in contract base and minimal customer concentration make it a cleaner takeout candidate than the legacy core providers that dominate the space.
Jana's letter to the board, filed concurrently, stops short of demanding an auction but requests a 90-day strategic review with external advisors. The firm has not disclosed its exact entry price but 13F data shows accumulation beginning in Q1 2024, when shares traded between $19-$22. Current price sits near $21, implying Jana entered near or slightly below market. The company has not yet responded publicly, though sources familiar with board discussions indicate willingness to engage if a credible buyer emerges with a premium north of $28-$30 per share.
Operators should watch for three signals over the next 60-90 days: formal engagement of a financial advisor (likely Qatalyst or Evercore given sector fluency), management commentary on the Q2 earnings call in early August, and whether Jana files additional amendments indicating coordination with other shareholders. Regional bank M&A activity remains elevated, with $14 billion in fintech deals closed year-to-date, but software takeouts have slowed since rates peaked. Alkami's contracted revenue and lack of credit exposure make it an outlier in a risk-off environment.
The 13D came 48 hours after Alkami reported Q1 results in line with guidance, suggesting Jana's patience ran thin despite operational discipline. The company's founder remains CEO and controls roughly 8% of shares, a dynamic that historically accelerates activist resolutions when management and board align on value realization. Sale processes in this segment average 120-180 days from advisor engagement to signing.