Bart C. Shuldman, TransAct Technologies' former chief executive who led the company for 27 years, delivered an open letter to the board and to shareholders on Thursday outlining his concerns about the company’s trajectory since his departure in April 2023. Shuldman, who still holds roughly 93,500 shares, criticized TransAct’s strategic emphasis and recent results.
In the letter, Shuldman called attention to the company’s stock performance, noting the share price has dropped by more than 50% over the last three years. He singled out TransAct’s push into food service software as a strategic misstep, saying the business lacks meaningful competitive advantages in a market populated by established competitors supported by investors including Battery Ventures and Digi/Jolt.
"The Company has not, to my knowledge, meaningfully introduced new products, expanded into new markets, or announced significant new large-scale customer wins," Shuldman wrote.
Rather than continuing to commit substantial resources to software development, Shuldman recommended the company concentrate on its hardware strengths. He specifically cited the BOHA! T2 terminal as a core hardware asset that should be the focal point of the business. He argued TransAct would be better served by forming partnerships with existing software providers instead of trying to compete directly in a crowded software landscape.
Shuldman also referenced strategic work that occurred prior to his exit from the company. He said three investment banks evaluated strategic alternatives and, according to him, indicated that separating the business into two entities might unlock value beyond current share prices. In light of these concerns, he questioned the current composition of the board and suggested the company could benefit from directors with deeper industry experience.
Shuldman emphasized that his criticisms stem from three years of observation as a shareholder and are not related to the circumstances of his departure. The open letter frames his views as shareholder-driven critiques of strategy and governance rather than personal grievances.
The letter presents a clear push for reorientation - a closer alignment with TransAct’s hardware capabilities, potential corporate restructuring, and changes in board expertise - while flagging the company’s recent stock weakness and what he portrays as underwhelming commercial progress.