Yahoo Finance Thoma Bravo Wins Battle for Coupa in $6.2 Billion Deal
(Bloomberg) -- Thoma Bravo LLC agreed to acquire Coupa Software Inc. for an equity value of $6.2 billion after outbidding Vista Equity Partners.
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The acquisition of Coupa caps off a year of sizable take-private deals for Thoma Bravo, including Anaplan Inc., Sailpoint Inc. and Ping Identity. It beat out Vista, another technology-focused private equity firm, which had also been in talks to buy Coupa.
Thoma Bravo will pay $81 a share in cash for San Mateo, California-based Coupa, a 77% premium to the closing price on Nov. 22, prior to a Bloomberg News report regarding the potential sale of the company, according to a statement on Monday.
The deal, which has an enterprise value of $8 billion and is expected to close in the first half of 2023, also includes a “significant minority investment” from the Abu Dhabi Investment Authority.
Coupa provides so-called business-spend management software, which helps companies track and manage the purchasing of goods and services. Customers have included Nestle SA and Groupon Inc., according to its website.
The market for tech buyouts has been busy despite financing being harder to come by. Bloomberg reported on Friday that private credit funds were pulling together debt packages for a buyout of Coupa.
Read more: Private Credit Firms Prep $3 Billion Loan for Coupa Bidders
The price is lower than what some shareholders have been seeking. HMI Capital Management, a top shareholder in Coupa, said earlier this month the software company should fetch at least $95 a share in a sale.
Another shareholder, Meritage Group, has also been in touch with Coupa on its views on the company’s value.
Billy Montana, a partner and portfolio manager at Jackson Square Partners, said in an email Friday that his firm owns 1.8 million shares and has told Coupa’s board it supports them in engaging with interested buyers to determine if there’s an attractive acquisition offer.
“An adequate takeout premium would represent immediate and certain value creation in an uncertain environment,” Montana said.
Coupa, led by chief executive officer Rob Bernshteyn, went public in 2016 at $18 a share.
--With assistance from Davide Scigliuzzo and Katie Roof.
(Additional context.)
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