Thoma Bravo in advanced talks to acquire Coupa Software – report

Technology-focused private equity firm Thoma Bravo is reportedly in advanced talks to buy Coupa Software (NASDAQ:CUT) after outbidding rival private equity firm Vista Equity.

A deal could be announced as early as this week, according to a Bloomberg report, which did not include a transaction price. The transaction price could be $81 per share, according to a tweet from CNBC’s David Faber. A price of $81 would value Coupa at more than $6 billion and represent a 77% premium to where the stock was trading prior to the announcement of a possible takeover offer, although it would still represent a discount of more than 50% from Coupa’s 52-week high.

The news comes after Bloomberg announced on Nov. 23 that Vista Equity was said to explore a possible purchase and had held talks with the company, driving shares up nearly 30% that day.

Chopped off (CUT) shares jumped 8% after-hours trading on Friday after a Bloomberg report that private credit companies are working on a A debt of 3 billion dollars to help fund a PE takeover of Coupa.

A potential $81 per share may not satisfy all shareholders. Last Monday top Coupa (CUT) shareholder said the software company should be able to collect at least $95 a share after receiving redemption interest. HMI Capital Management, which owns a 4.8% stake in Coupa, said it would not back a deal unless it was priced right and went through a sales process.

Other reference shareholder, Meritage Groupwhich holds a 5.3% stake in Coupa, also contacted Coupa (CUT) to express their views regarding a potential transaction and the price per share they believe to be in the best interest of the holders.

A recent conversation with investors indicates Coupa (CUT) could see a price of $75-$80 per share in a takeaway, (~8x NTM sales), Morgan Stanley analysts led by Keith Weiss wrote in a Thursday note. Based on a ~10x NTM sales multiple, there is a “reasonable framework” for Coupa to see ~$100 share in a potential takeover.

Coupa Software (CUT) might see a $80/serving take-out price in a possible acquisition, Raymond James analyst Brian Peterson said last month.

A potential deal with Thoma Bravo comes after the private equity firm announced on Wednesday that it had raised more than $32.4 billion for three new buyout funds. Thoma Bravo has been very busy with technology deals this year, particularly cybersecurity companies, taking over SailPoint Technologies for $6.9 billion in April, Ping Identity for $2.8 billion in August and he agreed to buy ForgeRock (FORGE) for $2.3 billion in October.

Investors can learn more about a potential Coupa (CUT) takeover as she is about to report Third quarter results Monday after the close.