Engine Capital Issues Statement Regarding Efforts to Drive Boardroom Change at Blucora

NEW YORK--(BUSINESS WIRE)--Engine Capital LP (together with its affiliates, “Engine” or “we") today announced that it has withdrawn its nomination of candidates for election to Blucora, Inc.’s (NASDAQ: BCOR) (“Blucora” or the “Company”) Board of Directors (the “Board”) at the upcoming Annual Meeting of Shareholders (the “Annual Meeting”). Engine believes the recent appointments of cybersecurity expert Kanayalal A. Kotecha and former investment banker J. Richard Leaman III represent a step in the right direction, especially given our publicly articulated concerns about the Company’s strategy and corporate structure. While Engine is disappointed with the Board’s yearslong resistance to adding a shareholder representative with financial expertise, we are hopeful that the addition of Mr. Leaman III as a director will help address Blucora’s failed “synergy-focused” strategy, excessive corporate overhead and sustained underperformance. Given his experience, we expect Mr. Leaman III will quickly identify that Blucora trades at a significant discount to the sum-of-the-parts and recognize the need to consider steps to close the valuation gap. Given our extensive engagement with leadership and these subsequent changes at Blucora, Engine will give the reconstituted Board ten months to address long-standing issues and unlock value for shareholders. Engine intends to continue engaging with the Board and absent enhanced value creation in 2022, we may seek meaningful change at Blucora’s 2023 Annual Meeting of Shareholders.

About Engine Capital

Engine Capital LP is a value-oriented special situations fund that invests both actively and passively in companies undergoing change.