NEW YORK (Reuters) - Rapid7 ( RPD ) is nearing a settlement with activist investor Jana Partners after the cybersecurity company and the hedge fund discussed ways to boost the share price by improving operations and exploring a sale, two people familiar with the matter told Reuters.

Three newcomers would join the eight-member board under the terms being discussed, said the people, who were not permitted to discuss the private negotiations publicly.

An agreement could be announced as early as Monday, but the situation remains fluid, the sources said.

Jana Partners declined to comment.

Representatives for Rapid7 ( RPD ) did not respond to requests for comment.

Boston-based Rapid7 ( RPD ) specializes in so-called vulnerability management, providing software tools and services that help businesses assess and monitor security risks. The company has been forced to compete harder for business as corporate clients cut back on security spending due to broader macroeconomic uncertainty.

The company's stock price has tumbled 41% in the last 52 weeks and is down 28% this year, shrinking its market value to roughly $1.8 billion.

Jana owned 3.7 million shares or a 5.8% stake in the company, according to a regulatory filing in March, LSEG data show.

Reuters reported in October that Rapid7 ( RPD ) was exploring options with investment bankers after attracting acquisition interest from buyout firms, including Advent, Bain Capital and EQT.

Industry data from Barclays show that 119 board seats were won by activist investors at companies in 2024 with 76% of them coming through settlements.

(Reporting by Svea Herbst-Bayliss and Anirban Sen; Editing by Lisa Shumaker)