Commvault, a provider of backup and recovery software, will soon find itself in a proxy battle with Elliott Management.

Elliott plans to nominate four directors for Commvault's 11 member board. The hedge fund controls 10.3 percent of Commvault's shares, making it one of the largest shareholders, according to a letter to management that was made public on Monday. The nominating window for Commvault directors closes later this week.

Elliott is said to be frustrated with Commvault's margins and will wage the proxy fight in an effort to either have management improve margins or have the company sold.

The hedge fund has a long history of taking large positions in small- to mid-cap tech companies and getting them sold to private equity. Commvault, which has top line growth of roughly 9 percent and margins of roughly 10 percent, could easily fit that mold.

"We are optimistic that we can work together with the Board to reach a collaborative agreement that will be in the best interests of the Company and its shareholders," Elliott wrote in the letter to Commvault's board.