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London — British software company Blue Prism said Tuesday that private equity firm Vista Equity Partners has agreed to buy for £ 1.1 billion ($ 1.5 billion) in cash.
Blue Prism, which specializes in software robots that automate repetitive tasks, said Vista will pay each shareholder £ 11.25 per share. This is a 35% premium over the company’s final closing price of £ 8.32.
This is the latest in a series of private equity transactions for listed software companies. Earlier this year, security firm Proofpoint agreed to sell $ 12.3 billion to Thomas Bravo, and Cloudera was acquired by KKR, Clayton and Dubilier & Rice.
Blue Prism is also one of the many UK companies of interest to US private equity investors. Supermarket chain Morrisons, infrastructure company John Rain, and aerospace company Cobham have all been subject to takeover bids in recent months.
After the acquisition is complete, Vista said it plans to indirectly transfer Blue Prism to enterprise data company portfolio company TIBCO.
“Combined with Vista and TIBCO, we can stay at the forefront of next-generation intelligent automation,” said Jason Kingdon, Chairman and CEO of Blue Prism.
“TIBCO’s global footprint and technology will allow us to expand the range of products we offer our customers, and as a private sector, capital to pursue new growth opportunities through product investments and other potential M & As. Access will also be expanded. “
The price of Blue Prism is a big discount for US-based rivals such as UiPath, a New York-listed company with a market capitalization of $ 28 billion, and the last personally valued $ 6.8 billion Automation Anywhere.
Blue Prism’s share price fell 2.6% on Tuesday morning.
Activist investor Coast Capital has expressed concern about the company’s reputation in speculation that it will be acquired by private equity buyers.
“Blue Prism PLC’s corporate value is currently valued at about three times its future revenue, which is an 80% to 90% discount over peers such as UiPath, Appian, WorkFusion and Automation Anywhere.” A letter from Coast Capital states.
“Even if the buyer pays a 100% premium, the stock price is significantly lower than it should be, well below where the stock was traded in January 2021.”
–CNBC’s Elliott Smith contributed to this report.
Blue Prism agrees to sell $ 1.5 billion to private equity firm Vista
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