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martinwolf Transaction Analysis
Vista Equity Partners Acquires Tibco Software (TIBX)
Financial Information*
- Enterprise Value: $4.3 Billion
- EV/EBITDA: More than 18x
Transaction Facts
- Enterprise software maker Tibco Software (Nasdaq:TIBX) announced yesterday that it was being acquired by Vista Equity Partners for $4.3 billion, in the largest U.S. technology buyout this year.
- The deal, at $24 per share, represents a 23% premium over Tibco's closing price on Friday. Following the transaction, shares of Tibco closed 21.2% higher at $23.65.
- Earlier this month, Tibco's board of directors had announced that the company had begun a review of "strategic and financial alternatives," including sale.
The Latest in a Privatization Trend
- Following a Familiar Path: Tibco's going private echoes similar moves by Compuware and BMC Software, both large enterprise software providers struggling to adapt to a changing software landscape made significantly more competitive due to the rise of subscription-based cloud companies. Going private relieves immediate investor pressure and allows companies to focus on revitalizing their business model.
 - The Squeaky Wheel...: This acquisition was prompted by Praesidium Investment Management Co., Tibco's sixth largest shareholder, which sent a series of letters to the board advocating a sale after the company's stock dropped 30 percent in a 2 year period marked by slowing revenue growth and declining profit.
- Consolidation Continues: Analysts expect similar deals to continue in the next 12-18 months as large enterprise software players complete strategic acquisitions to build their own in-house capabilities-especially in areas that complement their main practice, as in the case of the SAP-Concur acquisition earlier this month.
For more information, view the press release by clicking here.
martinwolf was not the advisor in this transaction.
*Financial information from the press release.
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About martinwolf
Walnut Creek, CA Bangalore, India
With offices in the San Francisco Bay Area and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 125 transactions in sixteen countries and sold seven divisions of Fortune 500 companies.
The firm is also a presenting sponsor of the Global IT M&A Forum.
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