US-based PE firm Vista Equity Partners has entered into a definite agreement to acquire NASDAQ-listed TIBCO Software Inc, an infrastructure and business intelligence software provider, for around $4.3 billion to take it private, the company said in a press release.
The deal is subject to approval by TIBCO stockholders, regulatory approvals and other customary closing conditions, and is expected to close in December 2014.
Vista will acquire all outstanding TIBCO common stock for $24 per share in cash for a total of $4.3 billion, including assumption of net debt, it said.
The purchase price represents a 26.3 per cent premium to the closing price of TIBCO common stock on September 23, 2014, one day prior to public reports that multiple parties were competing to acquire TIBCO.
The total enterprise value of the transaction represents more than 18 times TIBCO's EBITDA for the 12 months ending August 31, 2014.
"The sale of TIBCO to Vista will provide our shareholders with immediate and substantial cash value, as well as a compelling premium, and the board has unanimously agreed that this transaction is in the best interests of all our stakeholders," said Vivek RanadivÃ©, chairman and CEO of TIBCO.
"Additionally, as a private company, TIBCO will have added flexibility to serve our customers and execute on our long-term strategy. We are excited to work with our new partners at Vista and enter our next chapter of growth and industry leadership," Ranadive added.
Recently, TIBCO acquired Jaspersoft Corporation a privately held provider of embedded business intelligence (BI) and reporting software. Its other acquisitions include Extended Results, StreamBase Systems, Maporama SOlutions, LogLogic, Nimbus, Loyalty Lab, OpenSpirit, Proginet, Kabira, Netrics and others.
Goldman, Sachs & Co. is serving as financial advisor while Wilson Sonsini Goodrich & Rosati, Professional Corporation is serving as legal advisor to TIBCO. BofA Merrill Lynch, Deutsche Bank Securities Inc., Jefferies LLC, JPMorgan Securities LLC and Union Square Advisors LLC are serving as financial advisors, and Kirkland & Ellis LLP is serving as legal advisor to Vista.
JPMorgan Securities LLC and Jefferies Finance LLC have committed debt financing to Vista in connection with the transaction.
Vista is a leading private equity firm with over $13.5 billion in cumulative capital commitments, focused on investments in software, data and technology-enabled companies.
Ranadive started TIBCO in 1997. Today, its technology helps more than 4,000 customers thrive by powering everything from the web to airlines, financial services, utilities, communications providers, manufacturers and governments. Its helps its customers combine fast data with real-time information to provide immediate awareness and enable instant action. With revenue run rate of over $1 billion dollars, TIBCO is one of the fastest-growing software companies in its peer group.
A techpreneur, who is has also authored three books, he had also founded Teknekron Software Systems in 1986, which focused on creating the stock trading floor of the future. Teknekron went on to automate Wall Street and that technology became the engine for most of the world's capital markets.
A native of Mumbai, Ranadive went on get both a Master's and Bachelor's degree in Electrical Engineering from MIT and then obtained an MBA at Harvard, where he was a Baker Scholar.
A huge basketball fan, he became the co-owner and vice chairman of the Golden State Warriors NBA franchise. Last year he became the first Indian to own majority stake in an NBA team when he purchased the Sacramento Kings.