Private-Equity Firm Thoma Bravo Reportedly Nearing Deal To Buy Coupa Software, Outbidding Vista

Coupa Software Inc. COUP shares rallied sharply in after-hours trading on Friday amid rumors of a potential sell-out. Late Sunday, a report named private-equity firm Thoma Bravo as the frontrunner in the bidding race for the company.

What Happened: Thoma Bravo is in advanced talks to buy cloud-based business spend management platform Coupa and the deal could be announced as early as this week, Bloomberg reported, citing people familiar with the matter.

The private-equity firm has apparently outbid an offer from Vista Equity Partners, a technology-focused PE firm, the report added.

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Late Friday’s sharp rally in Coupa stock was in reaction to another Bloomberg report that said private credit funds were mobilizing debt packages for a Coupa buyout.

Top Shareholders Shoot For Hefty Premium: Although the deal value is not yet known, Coupa’s top shareholders have been in touch with the company about its potential valuation, with HMI Capital Management calling for at least $95 per share in the eventuality of a sale.

This would mean a 53% premium over the $62.09 stock price at the close of trading on Friday. The premium would be a much higher 108% from the Nov. 22 closing price of $45.72, before the M&A rumors began swirling.

Coupa is scheduled to report its fiscal year 2023, second-quarter results after the market closes on Monday. Analysts, on average, estimate earnings per share to decline from $0.31 to $0.10 but revenue to climb 14.8%, to $213.3 million.

Price Action: After closing regular trading on Friday down 2.53% at $62.09, Coupa rallied 7.91% to $67 in extended trading, according to Benzinga Pro data.

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