Thoma Bravo to buy Coupa Software for $6.15 billion amid tech slump

Coupa Software Inc said on Monday it has agreed to be taken private by buyout firm Thoma Bravo in a deal that values the cloud-based business software firm at $8 billion.

News of the deal sent Coupa’s shares up 27%, after a drop of more than 60% so far this year. Coupa shareholders will receive $81 per share under the deal, 30.5% higher than the stock’s closing level on Friday and 77.2% above Nov. 22, when takeover interest in the company was first reported.

The all-cash deal, which has an enterprise value of $8 billion including debt, includes a minority investment from an affiliate of sovereign wealth fund Abu Dhabi Investment Authority.

High inflation, weak consumer demand and the Ukraine crisis have slammed global stocks this year, with the tech sector among the worst hit. That has made some software companies acquisition targets for private equity firms although the lack of bank debt financing has weighed on deal-making activity.

Thoma Bravo’s acquisition of Coupa Software is being financed partly by a group of 19 direct lenders led by Sixth Street that is providing a $2.6 billion loan package. Other direct lenders on the deal include HPS Investment Partners, Oaktree Capital Management, Apollo Global Management Inc and Blackstone Inc, people familiar with the matter told Reuters.

The Coupa Software take-private is Thoma Bravo’s latest transaction this year after similar deals involving software companies such as Anaplan, Ping Identity, ForgeRock and Sailpoint Technologies.

Earlier this month, Coupa investor HMI Capital had said it would support a potential deal for more than $95 per share for the company. It did not respond to a request for comment.

Coupa Software, which went public in 2016, provides business-spend management software, which helps companies manage the purchase of goods and services. It reported a 17% rise in total revenue for the quarter ended Oct. 31 and a net loss of $84.1 million

Qatalyst Partners and Freshfields Bruckhaus Deringer advised Coupa, while Goldman Sachs & Co, Piper Sandler, and Kirkland & Ellis were advisers to Thoma Bravo. Reuters