Tuesday Morning, private, San Francisco-based Thoma Bravo, LLC bought Compuware Corp. for $2.5 billion. The deal, after approval by federal regulators and Compuware shareholders, will leave stockholders with $10.92 per share, a 17% bump up from the closing price of $9.35, Friday.
Thoma Bravo, LLC has been around for over 30 years and has built itself a reputation for being one of the most successful and experienced private equity firms in the United States. The company specializes in consolidating the application software, infrastructure software and technology enabled services sectors.
Thoma Bravo owns a variety of software companies including Attachmate, Deltek and Empirix.
Compuware Corp. is a technology performance company. They have occupied the application management arena for over 10 years. They are best known for their APM (Application Performance Management) software and services that make critical applications work better and faster for businesses.
According to sources, the deal is a longtime coming. The process began back in 2012 when activist hedge fund Elliot Management took stake in the company and offered $11 a share to acquire it. Elliot still owns 9.5% of Compuware and has agreed to vote in favor of the deal.
After Elliot took stake in Compuware, they underwent a series of cost-cutting measures, began paying a dividend and divested under-performing, noncore operations—like Covisint.
“We began with the I.P.O. of Covisint, initiated a robust dividend, divested noncore operations, and aggressively reduced corporate expenses,” Compuware’s chief executive, Bob Paul, said in a statement. “Compuware is now best suited to focus on its core mainframe and APM businesses as a private-equity backed company, where we can continue to serve our customers in a competitive environment with greater flexibility to take a long-term approach.”
Bob Paul says no layoffs planned in the sale of the company.