Thoma Bravo bought Vista shares-Coupa risen in price
2022.12.12 06:38
Thoma Bravo bought Vista shares-Coupa risen in price
Budrigannews.com – Coupa Software shares (NASDAQ:) are up 24% in pre-open Monday trading after Bloomberg News reported that Thoma Bravo, a private equity firm, offered a better deal than Vista Equity Partners.
The report said that the talks are getting better and that the deal could be announced this week.
When Bloomberg News reported on November 23 that Vista Equity was in talks to take the company private, Coupa shares rose nearly 29%. Since Bloomberg News first reported on the buyout talks, Coupa shares have increased by nearly 70% based on the pre-open price.
Coupa Software should be valued at $95 per share, according to some early investors, including HMI Capital Management, a major shareholder.
Needham & Company analysts predicted a takeout price close to $90 per share last month. In a similar vein, analysts at Raymond James predicted that the final purchase price for the company could be somewhere around $80 per share.
Barclays investigators recommended a greatest takeover cost of $82 per share.
More TUI inflation is not hindrance travelers
“We find a maximum purchase price of $81, or 9x NTM EV/rev, assuming a 25% required return and a 29x EBITDA exit multiple (in line with LTM), as well as a price of $66 assuming a more conservative 30% required return and a 4x turn compression on exit.
“Based on 7-8x NTM EV/rev, applying a discount to recently Fins software M&A (AVLR at 9x and PLAN at 13x) given the change in rate environment, this $66-$81 price range compares with our previously noted $66-78 range,” the analysts wrote in a note to clients yesterday.
In 2016, Coupa Software went public for $18 per share. In February 2021, shares reached a record high of $377.04 before falling nearly 90% to $40.30 in November.
