Vista Equity Partner is nearing to close a deal to buy a Texas-based company, Solera Holdings for $55.85 per share in cash. The total valuation of the deal including Solera's net debt is said to be worth $6.5 billion. The purchase price represents a 13 percent premium to the company's stock value.
According to a source, Reuters said that besides Vista, other investors on board with the purchase includes Goldman Sachs Group and Koch Industries. Both investors have their own role in the transaction. Koch will be responsible in investing in equity and preferred security while Goldman will deal with preferred securities and Solera's net debt.
The final decision regarding the offer will require an approval of Solera's stockholders and required regulatory approvals. On PR Newswire, Solera announced its board of directors had formed a special committee to address the deal make by Vista as the company is looking for alternative options that are deemed beneficial for the company. The committee includes Rothschild Inc, Centerview Partners LLC, and Sullivan & Cromwell.
The special committee had advised the board of directors and all of them agreed that the deal will benefit the company and are advising other stockholders to vote in favor of the merger. Tony Aquila, founder of Solera said, "This transaction delivers immediate compelling value to our stockholders and represents pivotal milestone for Solera in partnering with Vista".
Solera Holdings which main business is providing investors with risk management software was founded in 2005. It processes more than 230 million insurance transaction per year. Its client lists include 10 big insurance companies across Europe and United States.
Bloomberg data stated that the company reported revenue of $1.1 billion for 2015 fiscal year with adjusted earnings before interest, taxes, depreciation and amortization worth $458 million, up from $415.4 million in 2014.
Vista Equity Partner is reported to have $14 billion in cumulative capital commitments to invest in software and data companies as part of their strategic plan. Vista acquisition will further enhance its position in data and application software for enterprises. Previously, Vista acquired Tibco Software Inc. for $4.2 billion.
Besides Vista, another equity firm that has been making big purchases in data and software company is KKR & Co LP. The firm bought Sedgwick Claims Management Services Inc for $2.4 billion.
Solera share closed higher on Friday, up 3.9 percent as the news regarding the merger circulates. If there is any agreement is reached, the merger will too place during the first calendar quarter of 2016.
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