Business software and analytics company Tibco has announced a deal to sell itself for $4.3bn to a private equity company called Vista Equity Partners. The deal values shares in the company at $24 each.
Tibco’s chief executive Vivek Ranadivé said in a note announcing the deal that it was the best possible outcome for shareholders, and would help the company remain focused on pushing its product into new markets.
“We strongly believe that this transaction best positions the company to execute on our vision of providing the right information, at the right time, in the right context to make the world a better place,” he said.
“Additionally, as a private company, Tibco will have added flexibility to serve our customers and execute on our long-term strategy. We are excited to work with our new partners at Vista and enter our next chapter of growth and industry leadership.”
It is thought other private equity companies were involved in a potential buyout of Tibco, before Vista Equity Partners secured the deal.
The move to go private has echoes of Dell, which has taken a similar path, in order to be free from the glare of the stock market and quarterly financial statements that often force companies into short-term quick-fix decisions.
The move may also be welcomed by businesses that use Tibco products as, by going private rather than being acquired, it should experience no upheavals regarding its products or contracts in place.
Furthermore, it leaves another standalone company in the market that can compete with larger rivals, such as IBM, SAP or Salesforce, to offer different pricing deals and innovations.
Earlier this year Tibco bought analytics firm Jaspersoft for $185m as part of a push to add analytics capabilities to its offerings, as the company sees this as a major part of the future of business software requirements.
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