decor decor
"A mistake is simply another way of doing things."

-Katharine Graham

Vista Equity Partners Takes Marketo Private

Financial Information
  • Enterprise Value                                         $1.6 Billion
  • EV/LTM Revenue                                       6.9x
Transaction Facts
  • Vista Equity Partners, a software and IT focused private equity firm, announced yesterday that it will acquire all shares of the marketing automation company Marketo (Nasdaq: MKTO) for $35.25 per share.
  • Vista’s offer is a 64% premium over Marketo’s May 9th closing price (shares jumped on a news report that the company was considering a sale). It is a 9% premium to the stock’s Friday closing price.
  • The company announced continued revenue growth in its latest earnings announcement in April, but it also operated at a loss (and expected to continue doing so going forward).
Securing A Presence in a Desirable Space
  • Making Moves: This is Vista’s second major acquisition in the marketing space so far this year, having acquired event management company Cvent for $1.65 billion in April. Advertising and marketing technology is increasingly valuable as companies compete to monetize online users – Marketo and Cvent are the two largest US software take-private deals.
  • An Unexpected Twist: Many observers expected a strategic buyer to absorb Marketo, with names like Microsoft appearing in the press as a potential acquirer as recently as Friday. As the company has shifted its aim from small and mid-market accounts to larger accounts, it risks increased completion with tech giants like Salesforce, Oracle, or Adobe.
  • Disinterest in Tech Enables PE Play: The market has shied away from many technology stocks this year, especially those like Marketo operating at a loss. Consequently, Marketo shares lost almost half their value from the beginning of the year by mid-February. This, combined with Vista’s flush funding (the company is currently raising its sixth fund, with a cap of $10 billion) makes such large plays especially viable and strategic.
For more information about this transaction, click here to read the press release.
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,...