Thoma Bravo, tech-focused private capital firm, is in advanced discussions to buy Coupa SoftwareNASDAQ:COUP) after outbidding rival PE firm Vista Equity.
According to a report, a deal could be announced within the next week. Bloomberg reportThe price didn’t include a deal amount. According to a, the transaction price could be $81 per share. tweet from CNBC’s David Faber. A $81 price would put Coupa at $6 billion. It would be 77% more than where it traded prior to news of a possible buyout offer. However, it would still be more than 50% off Coupa’s 52-week high.
After Bloomberg reported Nov. 23, that Vista Equity was rumored to be looking into a possible purchase, and that they had held talks with them, the news sends the shares soaring almost 30%.
Coupa (COUP) shares jumped 8% After a Bloomberg report, after-hours trading was held on Friday following reports that private credit firms were working on a $3Billion debt package to finance a PE acquisition of Coupa.
Shareholders may not be satisfied by a potential $81 per share. A top shareholder of Coupa (COUP), said last Monday that the software company should be able get at least $95 per share after it has received takeover interest. HMI Capital Management has a 4.8% share in Coupa. It said that it wouldn’t support any deal unless it is at the right price and goes through a sale process.
Meritage Group, a top shareholder with a 5.3% stake, also reached out to COUPA (COUPA) to voice its opinions regarding potential transactions and the price per share they think would be best for holders.
Recent conversation with investors suggests that Coupa could see a $75-$80 share price in a takeover (8xNTM Sales multiple), Morgan Stanley analysts lead by Keith Weiss write in a Thursday note.
Raymond James analyst Brian Peterson indicated last month that Coupa Software could see a $80/share takeout in an acquisition.
Thoma Bravo may be interested in a possible deal, after the PE company announced Wednesday that it raised more money than $2.3 million.32.4 billion for three new buyout funds. Thoma Bravo was very busy this year with tech deals, especially in cybersecurity. She picked up SailPoint Technologies in April for $6.9 Billion, Ping Identity in August for $2.8 Billion, and then it agreed to purchase ForgeRock (FORG), for $2.3B in October.
Investors might be interested in learning more about the possible Coupa (COUP), takeover. It’s scheduled to report Q3 results Monday after the close.