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September 30, 2014


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.

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.   

 

martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.  

 

To learn more about martinwolf, contact Matthew Putzulu at mputzulu@martinwolf.com.

 

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