Thoma Bravo snags Coupa for $8B regardless of activist stress to maintain off for greater value • TechCrunch

When information surfaced final week that activist buyers had been taking the bizarre step of pressuring Coupa computer software to not promote for decrease than $ninety five a share, it bought our consideration. You don’t usually see buyers sending a letter asking a agency to maintain off on a sale. It’s typically the a quantity of.

however in the present day, the agency introduced that Thoma Bravo was buying it for $eight billion. That works out to $eighty one a share, which nonetheless represents a seventy seven% premium for shareholders, however effectively beneath what HMI Capital was asking for in a letter made public earlier this month.

The letter believed revealed rumors that one other private equity agency, Vista equity companions, was inside the hunt to buy it, however inside the future, Thoma Bravo was the client collectively with a completely owned subsidiary of the Abu Dhabi funding Authority (ADIA) additionally taking half inside the deal as a minority investor. Thoma Bravo has a protracted historic previous of buying mature enterprise computer software firms and taking them private.

Coupa, which makes spend administration computer software for large companies, has been having a tough 12 months inside the inventory market, like many SaaS firms, feeling the wrath of buyers trying for revenue over development. the agency’s inventory value was down sixty 4% 12 months-to-date and was down over 2.5% in pre-buying and promoting, suggesting that maybe buyers aren’t pleased with the deal.

agency CEO Rob Bernshteyn put a cheerful face on the deal as you’d count on, saying that clients can count on an identical stage of service, regardless of who the proprietor is signing the checks.

Roger Siboni, Coupa’s lead impartial director mentioned that the agency took into consideration the current financial local climate and decided it was a deal value taking. “The Board evaluated the transaction in opposition to the agency’s standalone prospects inside the current macroeconomic local climate and decided that the compelling and sure money consideration inside the transaction supplies superior hazard-adjusted worth relative to the agency’s standalone prospects. The Board is unanimous in its notion this transaction is the optimum path forward and inside utterly the best curiosity of our shareholders,” he mentioned in an announcement.

whereas the board of directors has unanimously agreed to the phrases, it should be consideration-grabbing to see if the shareholders are as nice to the deal as quickly as they meet early subsequent 12 months. it might seem that HMI Capital, which owns 4.eight% of the Coupa inventory, will lead the cost in opposition to the deal if the letter the agency revealed is any indication of its feelings regarding the agency being undervalued at this value.

ought to the deal move muster with stockholders and regulators, it is anticipated to close inside the principal half of 2023. Surprisingly, given HMI’s letter, there’s not a go-store provision with this deal, which might permit Coupa to protect trying for a greater deal.

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