Coupa Software has been acquired by private equity firm Thoma Bravo in an $8 billion, or $81-per-share all-cash acquisition, the company announced Monday.
Officials for the business spend management platform said the deal made sense financially.
“This transaction is the result of a deliberate and thoughtful process that included engagement with both strategic and financial parties,” Roger Siboni, Coupa’s lead independent director, said in a news release. “The board evaluated the transaction against the company’s standalone prospects in the current macroeconomic climate and determined that the compelling and certain cash consideration in the transaction provides superior risk-adjusted value relative to the company’s standalone prospects. The board is unanimous in its belief this transaction is the optimal path forward and in the best interest of our shareholders.”
New business clients across Europe, the Middle East and Africa are down 17% year to date for Coupa, while new North American midmarket business has been flat. Coupa officials also expect revenue growth in fiscal year 2024 to be below current Wall Street estimates.
San Mateo, California-based Coupa (NASDAQ: COUP) is a cloud-based business spend management platform that unifies processes across supply chain, procurement and finance functions. The company was founded in 2006 and has 3,076 employees.
Coupa, which oversees about $2 trillion in global spending, will become a privately held company upon completion of the transaction and the company’s common stock will no longer be listed on any public market.
The company will continue to operate under the Coupa name and brand.
“Coupa has created and led the large and growing business spend management category,” Holden Spaht, a managing partner at Thoma Bravo, said in a statement. “We’ve followed Coupa’s success for many years and have been impressed by its consistent track record of delivering high levels of value for its global customer base.”
Chicago-based Thoma Bravo is a private equity investment firm focused on the software and technology-enabled services sectors. The firm has more than $120 billion in assets under management.
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