Activist Engaged Capital Nominates Two Directors at Coupons.com Owner Quotient

(Bloomberg) -- Activist investor Engaged Capital has nominated two directors to the board of Coupons.com owner Quotient Technology Inc. in an attempt to replace the company's Chairman and Chief Executive Officer Steven Boal on the board, according to people familiar with the matter.

Engaged, which owns a 6.5% stake in Quotient, first disclosed its holdings of Quotient shares in November and said it believed several parties would be interested in acquiring the company. The activist said Quotient's underperformance was tied to its poor corporate governance.

Glenn Welling, Engaged's founder, said in a letter to Quotient's board at the time that his concerns were heightened when the company reported weaker than expected results in November, slashed its guidance and revealed it had lost a key customer, Albertsons Cos.

Shares in Quotient have fallen nearly 53% in the past year, shrinking the company's market value to $627 million. 

A representative for Quotient wasn't immediately available for comment.

The Newport Beach, California-based Engaged has nominated its own director of research Christopher Hetrick, 43, and media consultant Matthew O'Grady, 61, to the board, the people said, asking not to be identified because the matter is private. 

Quotient has a so-called staggered board, which means only three directors will stand for re-election this year, including its CEO Boal.

Engaged believes O'Grady is qualified to serve as a potential replacement as CEO for Boal, the people said.

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