Tibco Software Inc., which had been on the hunt for potential
suitors, said Monday that it has agreed to be taken private by
Vista Equity Partners for about $3.98 billion.
The $24-a-share price tag represents a 23% premium over Tibco's
closing price Friday. Including the assumption of debt, the deal is
valued at $4.3 billion, Tibco said.
The agreement comes weeks after Tibco, under pressure from
activist investor Praesidium Investment Management Co., unveiled a
plan to explore strategic options.
"In reviewing the sale alternative, Tibco engaged in an
extensive process involving a large and diverse group of strategic
and financial buyers," David West, a member of the company's
committee in charge of exploring options, said in a news release.
"Ultimately, the board concluded that the sale alternative was the
best alternative, and that Vista's offer to acquire Tibco is the
best way to maximize value for our shareholders."
The company's earnings had fallen shy of expectations of late,
while its Spotfire data software has lagged rivals. Tibco continued
to post weak results in its most recent quarter, saying earlier
this month that its profit and revenue fell as its software segment
struggled again.
Tibco Chairman and Chief Executive Vivek Ranadive said Monday
that the deal to go private would provide the company more
flexibility to executive its long-term plan.
Mr. Ranadive has sought to boost the company's revenue by
focusing on subscription pricing and generating a base of recurring
revenue.
Tibco also said its president, Todd Bradley, will soon leave the
company to pursue other opportunities.
Private equity firm Vista Equity specializes in buying and
investing in software, data and technology companies. Last year,
for instance, the firm took cybersecurity-software maker Websense
Inc. private for $1 billion.
Write to Michael Calia at michael.calia@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires