Starboard Value Discloses 5.1% Stake in Progress Software; Delivers Letter to CEO and Board Saying Company Deeply Undervalued

Starboard Value LP, today reported a 5.1% ownership stake in Progress Software Corporation (NASDAQ: PRGS) and announced that it delivered a letter to the Company's President and CEO, Jay Bhatt, and the Board of Directors. In the letter, Starboard stated its belief that Progress Software is deeply undervalued, and at its current price, the Company's Application Development Platforms segment alone is worth as much as, if not more than, the entire market value of the Company. Starboard believes this valuation discrepancy is, in part, due to the Company's conglomerate structure consisting of a highly profitable mature business along with a money-losing growth business with little to no overlap.

Starboard also provides an analysis of each of the Company's businesses and product lines to highlight its serious concern that the current market price of Progress Software fails to reflect the value of the sum-of-its-parts. Starboard does recognize in the letter that Mr. Bhatt only recently assumed the CEO position and states that it hopes to work with Mr. Bhatt and the Board of Directors to explore ways to unlock value at Progress Software for the benefit of all shareholders.