Thomas Bravo, the renowned private equity firm has announced that it has acquired Anaplan for $10.7 billion. This news comes just a few days after a shareholder teamed up with two hedge funds to start an activist campaign against the US-based software company.
The value of Anaplan Inc’s shares grew by 26% in premarket trading after the software company agreed to go private following Thomas Bravo’s acquisition.
As things stand, the deal is predicted to close in the first half of 2022. However, it is subject to regulatory approval and oversight by stockholders. The software company’s board of directors has given the green signal to complete the transaction.
Financial details of the deal
The deal which was announced on Sunday gave each investor $66 for every share which they held. That is a 30% premium over the firm’s last closing price on Friday.
Anaplan closed with a market cap of around $7.4 billion on Friday.
Over the past six months, the company’s stock price was moving in the downward direction with its value decreasing by 22%.
In the past year, the firm’s stock price has taken a hit of 7%. However, Thomas Bravo saw an opportunity and took it, offering the software company a value close to its peak price in the last six months to close the deal.
In the company’s most recent earnings statement, the company’s revenue increased by more than 30%. Anaplan has projected a rise in revenue in the next quarter as its stock value has increased since the revenue report was released.
The advent of the pandemic has made remote working more prominent than ever before. This trend has accelerated digital transformation across the corporate world, leading to an increase in demand for cloud software.
However, Anaplan failed to make the most of this trend as its share crashed by around 36% in that period.
Why did Thomas Bravo acquire Anaplan?
The 30% growth in Anaplan’s stock was one of the main factors why Thomas Bravo was acquired the San Francisco- based company. Besides, the private equity firm’s Managing Partner Holden Spaht believes that it can help Alapan grow.
Spaht said that they have closely monitored Anaplan for a few years and recognized the value they can bring to the existing customer base with their advanced planning platform. He added that Thomas Bravo is looking to leverage its in-depth investment and operational expertise in enterprise software to help Anaplan in its growth.
Anaplan was one of the hottest software companies between 2016 and 2018, providing a modern touch to how companies handled financial reporting and planning without depending on tools such as Excel.
More about Anaplan
Anaplan is a software company that offers planning software as a service to businesses that enable modeling various forecasting outcomes. Currently, it has over 1,900 customers across the globe.
Feature Image Source: Anaplan