Thoma Bravo purchased Software known as Coupa for $6.15 billion in the tech recession

Thoma Bravo purchased Software known as Coupa for $6.15 billion in the tech recession

December 14, 2022: -On Monday, Coupa Software said it would market to private-equity major Thoma Bravo for $6.15 billion in money, which calls the deal the “optimal path forward” as more general financial uncertainty hammers technology is storing.

Information of the deal has been sending Coupa’s shares up 27% in premarket trade following a more than 60% decrease in the year.

Coupa will be getting $81 for each share beneath the deal, 30.5% higher than the closing level and 77.2% above November 22, when takeover interest in the company was first stated.

Increased inflation, weak consumer demand and the Ukraine crisis have hit global stocks, with the tech sector being from the worst reach. That has is permissible for PE firms to buy high-growth software companies at decreased valuations.

Concerning the previous two years, Thoma Bravo has acquired Ping Identity, Proofpoint and Sailpoint Technologies.

“The transaction exists giving superior risk-adjusted value relative to the company’s standalone prospects,” Roger Siboni, an independent director at the software company, stated.

The all-cash agreement, which has an enterprise value of $8 billion, includes an investment from an affiliate of the sovereign wealth fund Abu Dhabi Investment Authority.

This month, Coupa investor HMI Capital added that it would support a potential deal for over $95 per share for the business. It did not respond to a Reuters statement seeking analysis.

Bloomberg News reported last month that Vista Equity Partners was curious about the company.

Coupa Software, going public in 2016, provides business-spend management software, which lets companies manage purchasing goods and services.

Qatalyst Partners and Freshfields Bruckhaus Deringer counselled Coupa, while Goldman Sachs & Co, Piper Sandler, and Kirkland & Ellis were advisors to Thoma Bravo.

Coupa reported a 17% upgrade in total revenue for the quarter that ended October 31 and a net failure of $84.1 million.

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