Thoma Bravo has agreed to buy Anaplan, a San Francisco-based business planning and performance management software provider, for approximately $10.7 billion.
Why it’s BFD: This reflects how the correction in cloud software stocks is making the sector more attractive to investors. Not only LBO firms, but also activists — including a group that last week disclosed a 9% stake in Anaplan and said it would appoint four directors to the company’s board.
Details: The offer is $66 per share in cash, representing a 30.46% premium to Friday’s closing price and a 46% premium to the five-day weighted average. Anaplan, which went public in 2018, last traded above $66 in September 2021.
- Thoma Bravo turned to the private debt market for most of its necessary financing, the syndicated loan market having been slowed down by the Ukrainian crisis.
Context: Deal talks long predated the push by activists, Axios has learned, with Anaplan and Thoma Bravo having first discussed a potential tie-up via a Zoom call last December.
The bottom line: “Before this year’s market slump, activists largely avoided cloud companies. Stocks, for the most part, have significantly outperformed the market for several years, leaving little room to unlock value. And the Most space companies don’t have the level of operating profit that activists prefer.” — CNBC
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