The hedge fund plans to vote against the $2 billion deal

Rivulet Capital has said it will vote against Thoma Bravo’s purchase of educational software giant Instructure. The firm – which owns 5.23% of Instructure – announced its intention in a regulatory filing. The company believes that the $2 billion price tag is too inexpensive. It also argues that the two sides are rushing to reach a deal. The hedge fund is the first major investor to oppose a deal publicly.

In the filing, Rivulet Capital said it “strongly” opposes “the proposed going-private transaction.” The filing says that the $47.60 purchase price “significantly undervalues the Company.”

Rivulet Capital Calls the Instructure Deal Rushed

The hedge fund was upset that Instructure operated a “rushed, three-week strategic alternatives process over the Thanksgiving holiday. Instead, Rivulet Capital wanted a 35-day shopping period that would have gone through the beginning of 2020.

Meanwhile, a handful of activist funds were pushing for a sale of Instructure. Both Sachem Head Capital Management and Praesidium Investment Management had built stakes and pressed for sales. Neither group has publicly commented on the deal.

Meanwhile, Instructure has pushed back on claims that it rushed a deal. Reuters notes that Thoma Bravo penned a confidential agreement in June.