Aug 31 (Reuters) – Activist hedge fund Engine Capital has a 1.5% stake in EPAM Systems and is pushing the software firm to increase share buybacks or consider a sale following stock declines sparked by fears of AI disruption, a source familiar with the matter said.
Engine’s managing partner, Arnaud Ajdler, urged EPAM’s board to use its existing $750 million cash pile, along with future free cash flows and debt, to boost its buyback program, the source said.
If the board does not pursue more buybacks or the program fails to boost performance, the company should launch a formal strategic review overseen by independent directors and a financial adviser, Ajdler said, according to the source.
EPAM and Engine Capital did not immediately respond to Reuters’ requests for comment.
The Financial Times first reported the development earlier on Monday.
Shares of EPAM rose 2.2% in premarket trading. They are down about 44% this year.
(Reporting by Svea Herbert-Bayliss in New York; additional reporting by Prathik Jayaprakash in Bengaluru; Editing by Maju Samuel)
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