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.

See Also: Best Technology Stocks Right Now

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.

Read Next: Jim Cramer Predicts This Software Stock Is 'Going To Come Back,' But 'They Have To Do That Pivot' First

 

Posted In: M&ANewsTechMedia
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...