Private Equity Firm Thomas Bravo Acquires Software Company Anaplan for $10.7 Billion

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. 

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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. 

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Feature Image Source: Anaplan

Karandeep V

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency. At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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