decor decor
"Have an attitude of positive expectation."

-Germany Kent

Informatica Taken Private for $5.3 Billion

martinwolf Transaction Analysis

Financial Information

  • Total Transaction Size: $5.3 Billion
  • Implied Enterprise Value: $4.6 Billion
  • EV/LTM Revenue: 4.4x
  • EV/LTM EBITDA: 23.8x

Transaction Facts

  • Enterprise software company Informatica Corp. (Nasdaq:INFA) agreed today to be taken private in an acquisition by Permira Advisers LLC and the Canada Pension Plan Investment Board.
  • The deal, at a per share price of $48.75, is approximately 6 percent higher than the company’s Monday closing price and more than 25 percent higher than the stock’s price at the beginning of the year before rumors of a pending sale began driving the stock up.
  • Totaling $5.3 billion, this transaction represents the largest leveraged buyout so far this year.

Another Major Software Company Goes Private

  • Activism Pays Off: In January, there were two indications that Informatica was exploring a possible deal – a report in the Wall Street Journal and a statement by activist investor Elliott Management Corp. that it owned 8 percent of the company (later increased to 9.5 percent in February). With today’s announcement, the payoff for investors has been substantial – and Elliott Management adds another successful transaction.
  • Focus on Software: With the rise of cloud technology presenting a significant opportunity for traditional software companies, we have seen an increased focus on software companies as acquisition targets recently – especially by private equity firms who offer the chance to transform outside of the demanding public market. As examples, last September Thoma Bravo took Compuware private for $2.5 billion while Vista Equity Partners acquired TIBCO for $4.3 billion. Also, in a similar club deal, Thoma Bravo teamed up with the Ontario Teachers’ Pension Plan to buy Riverbed Technology for approximately $3.6 billion in December.
  • A Vote of Confidence For Today’s Market: Historically, private equity firms have prioritized transactions with tangible, dependable assets. This recent trend of embracing software firms suggests that the private equity sector is increasingly bullish on today’s market and willing to expand the boundaries of its comfort zone.
  • Business Intelligence And Analytics Are Key: One of Informatica’s key differentiators is its Business Intelligence (BI) and analytics capability – an area that is very much in demand as companies seek to leverage the data that is increasingly available. Because of this demand, companies serving the so-called SMAC space (“Social, Mobile, Analytics, Cloud”) are enjoying high valuations and investor attention.
For more information on this transaction, click here. martinwolf was not the advisor in this transaction.
previous post Back to Articles next post

18 Oct 2021

CDW To Acquire Sirius Computer Solutions

Financial Information ($USD) Enterprise Value: $2.5 Billion EV/REV: 1.23x Transaction Details CDW Corporation today announced it has entered into a definitive agreement to acquire Sirius Computer Solutions, Inc from an affiliate of Clayton, Dubilier & Rice for $2.5 billion in cash. Sirius, a leading provider of secure, mission-critical technology-based solutions, generated 2020 net sales of $2.04 billion with approximately 3,900...

29 Sep 2021

H.I.G. Capital Announces Sale of Trace3

Financial Information Not Disclosed Transaction Details H.I.G. Capital announced that one of its affiliates has entered into a definitive agreement to sell Trace3, a premier provider of IT solutions and services, to affiliates of American Securities. Financial terms of the transaction are not being disclosed, but the press release cites Trace3 revenue of $1.4 billion....

02 Aug 2021

TowerBrook Capital Partners Makes Strategic Investment in EisnerAmper LLP

Transaction Details TowerBrook Capital Partners, an international investment management firm, has made a strategic investment in EisnerAmper, one of the largest professional services firms in the world, offering premier accounting, tax and business advisory services. The firm will now operate two divisions: EisnerAmper LLP, a licensed CPA firm, will provide attest services; and Eisner Advisory Group LLC,...