Barclays raises TIBCO on Acquisition News

Barclays upgraded the rating for TIBCO Software Inc. TIBX on Tuesday to Equal Weight and raised the Price Target to $24.

 

Analysts Raimo Lenschow and Saket Kalia upgraded the rating due to news that the software company will be acquired by Vista Equity Partners at $24 per share for $4.3 Billion in cash.

 

The Barclays report noted that “Tibco has been under pressure from activists to explore strategic alternatives since Praesidium Investment Management Company issued a letter to Tibco's board on June 11 imploring the company to unlock value.”

 

Lenschow also commented that he believes “it is unlikely that shareholders will try to hold out for a better offer, given the somewhat expensive valuation of this deal at 20x” based on Barclays FY15 EBITDA estimate of $210 Million.

 

TIBCO Software Inc. traded at $23.64 midday on Tuesday.