Coupa Software Inc shares raced up nearly 24% in New York as it announced that private equity group Thomas Bravo was buying it for $6.15 billion in cash.
The software firm will receive $81 per share under the deal - 30.5% higher than the shares closing level on December 9 and a 77.2% premium to the stock price on November 22 when takeover interest in the company was first reported.
Coupa makes spend management software for large businesses. It has been having a tough year in the stock market, like many tech and SaaS companies, with high inflation and the Ukraine war taking a toll.
The company’s share price has fallen 64% in the year so far.
READ: Coupa Software's shares surge on reported Vista Equity interest
Roger Siboni, Coupa’s lead independent director said in a statement: "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," he added.
Earlier in December, large Coupa shareholder HMI Capital (around 4.8%) had said it would support a potential deal for more than $95 per share.
In a letter to the board, HMI said there were rumors that another private equity company Vista Equity Partners, was on the hunt to buy Coupa.
Shares in Coupa Software added 23.7% to US$78.65 each
Contact the writer at giles@proactiveinvestors.com