Boingo Reaches Deal With Ides to Add Three Directors

Boingo Wireless Inc. said it named three new independent directors to its board, putting an end to the proxy fight launched earlier this year by hedge fund Ides Capital Management LLC.

The company said it would appoint Maury Austin and David Cutrer to the board effective immediately, with Kathleen Misunas joining the board following the company's annual shareholder meeting on June 9.

The moves will expand Boingo's board from six members to nine.

As part of an agreement between the activist investor and the wireless-service provider, Ides agreed to withdraw the two nominees it put forward in March. Legion Partners Asset Management, LLC also agreed to support Boingo's nominees and both firms said they would not seek a proxy fight through next year's annual shareholder meeting.

Ides holds a 0.4% stake in the company, according to Boingo.

In May, Ides said it believed Boingo was "materially undervalued and that a better-run, more profitable and more transparent Boingo could result in a share price that is as much as 100% higher than the current share price." The hedge fund sent a letter to Boingo's stockholders, asking them to support its two nominees to Boingo's board.

Ides, which pushes for board diversity, is run by its chief investment officer, Dianne McKeever. On Wednesday, Ms. McKeever called the agreement with Boingo a "collaborative solution," and said the additions "will provide important fresh voices and perspectives."

Boingo Chairman and Chief Executive David Hagan said the new directors would "bring relevant perspectives and expertise in areas essential to our business, including finance, wireless, technology and corporate governance, and we look forward to benefiting from their insights."

Mr. Austin is a director at Extreme Networks, where he has served since 2012, and has previously served as chief financial officer for several technology companies. Mr. Cutrer is chief executive of Kumu Networks, a wireless technology firm, and was previously a consultant for telecommunication companies. He also served as the co-founder and chief technology officer at NextG Networks from 2001 until 2012, when the company was sold to Crown Castle International Corp.

Ms. Misunas is a director at Tech Data Corp., and has previously served in director roles at companies such as Travelocity.com and the American Airlines Credit Union.

Boingo provides Wi-Fi service at airports, military bases and other hot spots.

Shares, up 11% so far this year, declined 0.9% to $7.34 in early trading in New York.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

June 01, 2016 10:45 ET (14:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.