Technology-focused private equity firm Thoma Bravo mentioned in advanced arguments to buy Coupa Software (Nasdaq: coup) after outperforming rival PE firm Vista Equity.
The deal could be announced as early as this week, according to Bloomberg report, which did not include the transaction price.The trading price could be as high as $81 per share, one person said. Tweet from CNBC’s David Faber. An $81 price would value Coupa at more than $6 billion, representing a 77% premium to the price the stock traded prior to news of a potential takeover offer, but still down from Coupa’s 52-week high. More than 50% discount.
The news was reported by Bloomberg on Nov. 23 that Vista Equity was said to be exploring a potential acquisition and was in talks with the company, prompting its share price to surge about 30% that day. brought later.
Coupa (COUP) Stock 8% increase The private credit firm was said to be working on a $3 billion debt package to help finance Coupa’s PE acquisition, in after-hours trading Friday after Bloomberg reported.
A potential $81 per share may not please all shareholders. Last Monday, Coupa (COUP)’s largest shareholder said he should be able to earn at least $95 per share after the software company receives acquisition interest. His HMI Capital Management, which owns a 4.8% stake in Coupa, said it would not support the acquisition unless it goes through the sale process at an appropriate price.
Coupa’s other largest shareholder, Meritage Group, which holds a 5.3% stake, has also contacted Coupa (COUP) to discuss a potential transaction and a price per share that it believes will be in the best interests of its holders. expressed an opinion on
Morgan Stanley analysts led by Keith Weiss said in a note on Thursday that in a recent conversation with investors, Coupa (COUP) could sell takeout at a price of $75 to $80 per share (nearly eight times NTM sales). ). There is a “reasonable framework” under which Coupa can take shares up to $100.
Raymond James analyst Brian Peterson said last month that Coupa Software (COUP) could offer a buyout price of $80 per share.
The potential deal with Thoma Bravo comes after the private equity firm announced Wednesday it had raised more than $32.4 billion for three new buyout funds. It’s been busy with deals, acquiring SailPoint Technologies for $6.9 billion in April, Ping Identity for $2.8 billion in August, and ForgeRock (FORG) for $2.3 billion in October. agreed.
Investors may learn more about a potential acquisition by Coupa (COUP) as it plans to report third-quarter results after the close of trading on Monday.