March 3, 2025

Daktronics has entered into a cooperation agreement with its largest shareholder in return for withdrawal of litigation and support of its move to reincorporate in Delaware.

Alta Fox Capital Management filed a lawsuit last month to block Daktronics from changing its corporate jurisdiction from South Dakota to Delaware, a move Daktronics had said would not affect its operation in South Dakota. In addition to changing course on the issue, Alta Fox agreed to “adhere to customary standstill restrictions and voting commitments through the company’s 2027 annual meeting of shareholders,” according to a statement.

As part of the agreement, Daktronics is appointing Peter Feigin, an Alta Fox-recommended candidate, as a new independent member of the board of directors. Feigin serves as president of the NBA team Milwaukee Bucks and the Fiserv Forum sports arena.

He has more than 25 years of sales and marketing experience, including as chief marketing and revenue officer of Deluxe Entertainment Services Group, an international entertainment company.

“The addition of Peter Feigin to the board will bolster the company’s efforts to drive long-term value,” Reece Kurtenbach, Daktronics chairman, president and CEO, said in a statement. “We welcome him and look forward to working together.”

Connor Haley, managing partner of Alta Fox, added: “It is a win for all of Daktronics’ shareholders and stakeholders to have Peter, a well-known sports and entertainment industry leader, join the company’s board. Together with leadership’s governance enhancements and investor relations commitments, his appointment positions Daktronics for long-term success. We are pleased to move forward in a constructive manner and work with the board and management to enhance value for shareholders.”

Daktronics, based in Brookings, designs and manufactures video communication displays and control systems for customers worldwide.

The company also announced that it will host an Investor Day in 2025 “to provide shareholders with greater insight into the company’s strategy, financial targets and outlook, and capital allocation framework,” along with soliciting input from Alta Fox as it selects a new chief financial officer.