Vista Equity Partners to acquire Tibco Software for $4.3 billion

Vista Equity Partners has reached a $4.3 billion deal to acquire Tibco Software, a Palo Alto-based business that provides cloud computing software for companies, the two companies announced on Tuesday.

Tibco stockholders will get $24 per share in cash, which is a 26% premium on the share’s $19.51 closing price on Friday. The transaction was approved unanimously by Tibco’s board of directors.

Vista Equity Partners clinched the deal amid fierce competition from several suitors.

Vivek Ranadivé, Chairman and CEO of Tibco Software Inc., said:

“The sale of TIBCO to Vista will provide our shareholders with immediate and substantial cash value, as well as a compelling premium, and the Board has unanimously agreed that this transaction is in the best interests of all our stakeholders.”

Tibco Software Inc.

Tibco Software has been under pressure from an activist investor to find a buyer after profits persistently declined.

In its last quarter, Tibco posted profit of $1.5 million compared to $8.8 million in the same quarter last year.

Robert F. Smith, Chairman and CEO of Vista Equity Partners, said of the agreed deal:

“We look forward to working with the talented management team and employees to accelerate TIBCO’s growth and strengthen its leadership as a complete fast data platform. We worked hard to make this deal happen because we understand the tremendous value that TIBCO can bring to its customers and the marketplace as a private company. We are incredibly excited to help TIBCO reach its full potential.”

San Francisco-based Vista Equity Partners specializes in acquiring and turning around tech companies. It has approximately $13 billion in assets under management and is one of the most successful private equity firms in the United States.

The transaction still needs to be approved by Tibco shareholders.

Tibco’s financial advisor is Goldman Sachs & Co., and its legal advisor is Wilson Sonsini Goodrich & Rosati, Professional Corporation.

Vista’s financial advisors are Union Square Advisors LLC, JP Morgan Securities LLC, Jefferies LLC, Deutsche Bank Securities Inc., and BofA Merrill Lynch, and its legal advisor is Kirkland & Ellis LLP.