In contrast, Jason Kingdon, chairperson and CEO of Blue Prism stated that SS&C’s offer would permit the group to access ‘significant capital resources.’ Meanwhile shareholders such as Hawk Ridge Capital voiced concern regarding Blue Prism’s acceptance of what they believed to be an undervaluation of the company at Vista’s initial bid price of 1,125 pence a share. Vista had announced its intention to streamline Blue Prism’s business by merging the company with San Francisco-based TIBCO Software Inc., a move that would significantly reduce its combined workforce. Vista’s proposal had attracted criticism from shareholders and employees alike, despite Blue Prism’s board initially stating it believed the offer represented the best value for shareholders. However, following the announcement that SS&C had decided to proceed with a firm offer of 1,275 per share for the company, Blue Prism’s directors released a statement confirming the withdrawal of their recommendation of the rival offer made by Vista, which Vista had increased on 25 November from 1,125p per share to 1,250p, valuing the company at £1.22bn. The company announced on 24 November that the meetings had been rescheduled to 9 December. (SS&C).ĭespite having initially reached an agreement with Bali Bidco Limited, a company owned indirectly by Vista Equity Partners (Vista), Blue Prism adjourned the court and general meetings planned for 19 November once talks began with SS&C, to allow the board to consider the new offer. “Were a buyer to pay a premium of 100%, the share price would still be materially less than its intrinsic value, and well below where the shares were trading as recently as January 2021.On 1 December 2021, Warrington-based software company Blue Prism plc confirmed that the terms of an agreement to acquire the company’s issued and to be issued share capital for £1.24bn had been reached with Connecticut-based financial services software firm SS&C Technologies Holdings, Inc. “The Enterprise Value of Blue Prism PLC is currently valued at approximately three times forward revenues – an 80% to 90% discount to the company’s peers including UiPath, Appian, WorkFusion, Automation Anywhere, etc.,” the letter from Coast Capital said. Shares of Blue Prism sank 2.6% Tuesday morning.Īctivist investor Coast Capital had expressed concern about the company’s valuation amid speculation it was set to be taken over by private equity buyers. The price for Blue Prism marks a significant discount to U.S.-based rivals such as UiPath, the New York-listed company with a $28 billion market cap, and Automation Anywhere, which was last privately valued at $6.8 billion. “We can expand the range of products we offer our customers, with TIBCO’s global footprint and technologies and, as a privately owned company, we will also have greater access to capital to pursue new growth opportunities via product investment and other potential M&A.” “Combining with Vista and TIBCO will ensure we remain at the forefront of the next generation of intelligent automation,” said Jason Kingdon, chairman, and CEO of Blue Prism. Supermarket chain Morrisons, infrastructure company John Laing, and aerospace firm Cobham have all targeted takeover bids in recent months.Īfter the acquisition, Vista said it intends to indirectly transfer Blue Prism to portfolio company TIBCO, an enterprise data firm. Security firm Proofpoint agreed to a $12.3 billion sale to Thoma Bravo, while Cloudera is being bought by KKR and Clayton, Dubilier & Rice.īlue Prism is also among many British firms that have attracted interest from U.S. It’s the latest in a string of private equity deals for publicly-listed software companies. September 29, 2021: -British software company Blue Prism said Tuesday it has agreed on a deal to be taken over by private equity firm Vista Equity Partners for £1.1 billion in cash.īlue Prism, specializing in software robots that automate repetitive tasks, said Vista would pay each shareholder £11.25 for each share, a 35% premium to the company’s last closing price of £8.32.
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