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Apptio To Go Private In $1.94B Deal

Apptio To Go Private In $1.94B Deal

Merger Monday has kicked off with a tech deal. Shares of business management SaaS company Apptio Inc (NASDAQ: APTI) were rallying after the company announced a go-private deal. 

What Happened

Apptio announced an agreement Sunday to be bought by an affiliate of tech-focused private equity firm Vista Equity Partners.

The deal comes just a little over two years after the company offered its shares to the public in an IPO, pricing its 6-million-share common stock offering at $16 per share.

Since the Sept. 23, 2016 listing, the shares have added about roughly 10 percent.

The deal announced Sunday is priced at $1.94 billion, or $38 per share in cash, which represented a 53-percent premium over the Friday closing price of Apptio shares.

The deal has been unanimously approved by Apptio's board. 

Why It's Important

Apptio said it sees the deal as providing the company with the flexibility to achieve its mission, product innovation, geographical expansion and the work of the TBM Council.

"Vista's investment and deep expertise in growing world-class SaaS businesses and the flexibility we will have as a private company will help us accelerate our growth while helping us maintain our commitment to creating wildly successful customers," Sunny Gupta, cofounder and CEO of Apptio, said in a statement. 

What's Next

The merger agreement provides for a 30-day go-shop period in which Apptio can evaluate competing offers.

Apptio said it expects the deal to close in the first quarter of 2019, and the closing is subject to customary conditions, including shareholder approval and antitrust approval in the U.S.

If the deal goes through, Apptio's headquarters will remain in Bellevue, Washington.

Apptio shares were ripping 51.43 percent higher to $37.63 at the time of publication Monday. 

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