The global economy began cooling off over the summer, and since then, companies have been playing things safe in terms of maintaining their growing businesses. Generally, lower consumer demand leads to lower stock prices for publically traded companies. One such entity announced on Monday its new plan for weathering out turbulent economic conditions.
Coupa Software, a San Mateo-based provider of business spend management software, is leaving the public sector. The company recently signed a definitive agreement to be acquired by Thoma Bravo, an equity investment firm with more than 420 portfolio companies. By joining the ranks of Thoma Bravo, Coupa will become a privately held company.
The all-cash deal is worth $8 billion, according to a statement from Coupa. The transaction is set to close in the first half of 2023.
The Coupa platform serves businesses across a range of industries, including healthcare, education and technology, with a suite of cloud-based solutions for procurement, supply chain and finance.
“For more than a decade, we’ve been building an incredible business spend management community and have proudly cemented our position as the market-leading platform in our category. We’re looking forward to partnering with Thoma Bravo and accelerating our vision to digitally transform the office of the CFO,” Rob Bernshteyn, Coupa’s chairman and CEO, said in a statement. “While our ownership may change, our values do not.”
Since Coupa will be exiting the public sector, the company’s shareholders will receive $81 per share in cash. This price represents a 77 percent premium to Coupa’s closing stock price on November 22.
When the transaction closes, Coupa’s common stock will no longer be listed on any public market, and the company will continue operations under the Coupa name and brand.
“Our shared vision, combined with Thoma Bravo’s strategic and operational expertise, will enable Coupa to continue driving innovation, better serve its customers and accelerate important growth initiatives during this next chapter as a private company,” Brian Jaffee, a partner at Thoma Bravo, said in a statement.
