December 12, 2022
Coupa Software program Inc. (NASDAQ: COUP), a enterprise spend administration software program supplier that additionally operates a VMS, struck a deal to be acquired by Thoma Bravo, a software program funding agency, for $81 per share.
That is an all-cash transaction with an enterprise worth of $8.0 billion. Following the deal, San Mateo, California-based Coupa will change into a privately held firm. It’s going to proceed to function below the Coupa model.
“We’re trying ahead to partnering with Thoma Bravo and accelerating our imaginative and prescient to digitally remodel the workplace of the CFO,” Coupa Chairman and CEO Rob Bernshteyn stated.
Coupa acquired a vendor administration system in August 2018 from DCR Workforce Inc.
“This can be a important deal that serves to underline how the enterprise spend administration market is ripe for funding in addition to disruption,” stated Matt Norton, workforce options analysis director at Staffing Trade Analysts. “From a extra slender VMS perspective, this represents one other noteworthy transaction with important M&A market exercise prior to now two years. There was an uptick in VMS-related investments and acquisitions following a suppressed market over the 18 months prior.”
Previous to its acquisition by Coupa, the VMS had been working below the Sensible Observe model.
DCR filed a lawsuit towards Coupa in June 2021 in US District Courtroom alleging breach of contract and different claims, in line with a submitting by Coupa with the US Securities and Change Fee. DCR sought numerous damages together with 206,065 shares of Coupa inventory. Beneath the acquisition settlement, Coupa had agreed to pay earn-out consideration if the VMS enterprise achieved sure revenue-related milestones via measurement intervals that proceed on via Dec. 31 of this yr. The VMS enterprise met the goal for the primary measurement interval, and Coupa issued inventory; nonetheless, it didn’t meet the goal for the second measurement interval. DCR filed the grievance after it was notified.
Thoma Bravo’s acquisition of Coupa obtained unanimous approval from the Coupa board, and it’s anticipated to shut within the first half of 2023. It’s topic to customary closing situations, together with approval by Coupa shareholders. Nevertheless, the transaction shouldn’t be topic to a financing situation. Coupa additionally famous the transaction features a important minority funding from the Abu Dhabi Funding Authority.
As well as, as we speak Coupa reported earnings for its third quarter of fiscal 2023. Income was up 17.0% yr over yr to $217.3 million with the expansion completely within the firm’s subscription enterprise. Income fell 10.2% in its skilled and different enterprise.
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Share worth and market cap
Shares in Coupa have been up 26.78% to $78.72 as of 12:22 p.m. Jap time; they have been 95.35% above their 52-week low, in line with FT.com. The corporate had a market cap of $4.71 billion.
