LED Giant Daktronics Reaches Settlement with Activist Investor After Years of Conflict

March 5, 2025 by Dave Haynes

The executive and board of big US LED display manufacturer Daktronics seem to finally have a protracted battle with an activist investor resolved, with news that a “cooperation agreement” has been reached with Alta Fox Capital Management, ending a three-year dispute that went all the way to litigation and public demands.

The dispute began in 2022, with Alta Fox buying a significant stake in Daktronics and then pushing for major changes at the company.

Alta Fox criticized Daktronics’ financial performance, corporate governance, and strategic direction, and pushed for board changes, looking to get their own nominees seats at the table and  arguing that Daktronics was undervalued and in need of new leadership. Daktronics, as you might expect, disagreed and called Alta Fox’s efforts disruptive.

Alta Fox has agreed to withdraw all litigation against the company, support Daktronics’ reincorporation to Delaware, and adhere to standstill restrictions and voting commitments through the 2027 annual shareholders meeting.

In turn, Daktronics has agreed to host an Investor Day this year that will give shareholders greater transparency into company strategy, financial targets, and budget plans. Daktronics has also agreed to get input from Alta Fox on filling the vacant Chief Financial Officer, which has been expressed as one of the key concerns of the activist  investors.

Daktronics will appoint Peter Feigin, Alta Fox’s recommended candidate, as a new independent board member. Feigin, who runs the NBA’s Milwaukee Bucks Inc. and the Fiserv Forum sports arena, has 25 years of sales and marketing experience and comes from an industry that is a MAJOR market segment for Daktronics.

The resolution comes after a lot of bickering. Alta Fox had recently been accused by Daktronics of making “self-serving” demands to obtain accelerated repayment of a $25 million convertible debt investment. Daktronics’ woes intensified in late 2024 when a second activist investor, Breach Inlet Capital, issued its own public letter demanding board changes.

The new agreement has a three-year standstill provision that gives Daktronics’ management team some breathing room to work on strategic initiatives without feeling pressure from its largest shareholder.