Thoma Bravo snags Coupa for $8B despite activist pressure to hold off for higher price • TechCrunch


When news surfaced last week that activist investors were taking the unusual step of pressuring Coupa Software to not sell for less than $95 a share, it got our attention. You don’t normally see investors sending a letter asking a company to hold off on a sale. It’s typically the opposite.

But today, the company announced that Thoma Bravo was acquiring it for $8 billion. That works out to $81 a share, which still represents a 77% premium for shareholders, but well below what HMI Capital was asking for in a letter made public earlier this month.

The letter believed published rumors that another private equity company, Vista Equity Partners, was in the hunt to buy it, but in the end, Thoma Bravo was the buyer along with a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) also participating in the deal as a minority investor. Thoma Bravo has a long history of acquiring mature enterprise software companies and taking them private.

Coupa, which makes spend management software for large businesses, has been having a rough year in the stock market, like many SaaS companies, feeling the wrath of investors looking for profit over growth. The company’s stock price was down 64% year-to-date and was down over 2.5% in pre-trading, suggesting that perhaps investors aren’t happy with the deal.

Company CEO Rob Bernshteyn put a happy face on the deal as you would expect, saying that customers can expect a similar level of service, regardless of who the owner is signing the checks.

Roger Siboni, Coupa’s lead independent director said that the company took into consideration the current economic climate and decided it was a deal worth taking. “The Board evaluated the transaction against the company’s standalone prospects in the current macroeconomic climate and determined that the compelling and certain cash consideration in the transaction provides superior risk-adjusted value relative to the Company’s standalone prospects. The Board is unanimous in its belief this transaction is the optimal path forward and in the best interest of our shareholders,” he said in a statement.

While the board of directors has unanimously agreed to the terms, it should be interesting to see if the shareholders are as friendly to the deal when they meet early next year. It would seem that HMI Capital, which owns 4.8% of the Coupa stock, will lead the charge against the deal if the letter the firm published is any indication of its feelings about the company being undervalued at this price.

Should the deal pass muster with stockholders and regulators, it is expected to close in the first half of 2023. Surprisingly, given HMI’s letter, there is no go-shop provision with this deal, which would allow Coupa to keep looking for a better deal.

#Thoma #Bravo #snags #Coupa #activist #pressure #hold #higher #price #TechCrunch


Related Posts

Marvel’s Blade Movie Delayed by Writer’s Strike

[ad_1] Marvel’s vampire hunter Blade is a fierce warrior but he may have finally met his match: labor unions. The upcoming, long-in-development reboot of the Marvel franchise…

How to Watch the Coronation of King Charles III Live

[ad_1] King Charles III officially shed his princedom when Queen Elizabeth II died, and the British royal’s new position will be formalized on May 6 in a coronation…

‘Quordle’ today: See each ‘Quordle’ answer and hints for May 6

[ad_1] If Quordle is a little too challenging today, you’ve come to the right place for hints. There aren’t just hints here, but the whole Quordle solution….

How to use a passkey instead of a password to sign into your Google account

[ad_1] Passwords have always been a necessary evil, giving you the choice of either using one that is too simple (so you can easily remember it) or…

Amazon quietly acquired audio content discovery engine Snackable AI to boost its podcast projects

[ad_1] Amazon quietly acquired New York-based audio content discovery engine Snackable AI last December to boost its podcast features, as first reported by New York Post. The…

Warhammer 40K’s New Tyranid Screamer-Killer Is a Great Update

[ad_1] A new edition of Warhammer 40K means new models—and for some of the 40-year-old wargaming franchise’s creatures and characters, that means updates they’ve not had in…

Leave a Reply

Your email address will not be published. Required fields are marked *