Compuware, a mainstay in the IT world of mainframes, has agreed to go private by way of a $2.5 billion buyout offer.
The purchase, by private-equity firm Thoma Bravo, prices the company’s shares at $10.92 each, slightly less than the $11/share previously offered by hedge fund Elliott Management. Elliott currently owns nearly 10 percent of the company and had been trying to acquire it for the last 18 months. The Bravo price is about 17 percent higher than the company’s closing stock price last Friday.
“Compuware is the clear established leader in the categories of application performance and mainframe productivity tools, and this transaction is the capstone to a series of transformative company initiatives to relentlessly drive value,” chief executive Bob Paul said in a statement.
Those initiatives, spurred by the Elliott takeover attempt, have included the spinoff of cloud engagement platform Covisint, a first-ever dividend, cost cutting, new executives and board members, and divesting what the company has described as “non-core operations.” The venerable Detroit-based company, started in 1973, said it can now focus on its mainframe solutions and application performance management.
Elliott Management’s track record includes previously inducing other companies in which it had a stake to sell themselves, such as software vendor BMC Software and infrastructure software provider Novell. It has also worked to increase shareholder value from Juniper Networks, EMC unit VMware, and others. Among other technology companies, Bravo owns Attachmate, which now owns Novell.
Via the New York Times