(Correction: Corrects typo in headline.)
Enterprise software and information solutions provider Deltek, Inc. (PROJ: Quote) announced Monday that it has entered into a definitive agreement to be acquired by private equity investment firm Thoma Bravo, LLC for about $1.1 billion cash. Following the closing of the deal, Deltek will become a privately held company.
As per the agreement, Deltek's stockholders will receive $13 in cash for each share of Deltek stock on closing of the deal.
Deltek noted that the offer price represents a 7 percent discount to its stock price on August 24 and a 24 percent premium on its stock price on June 11, the day before it broadly disseminated information on the sales process to interested parties and their respective advisors on a confidential basis.
The offer price also represents a 14.6x multiple of enterprise value to Deltek's trailing twelve months adjusted EBITDA as of June 30.The deal is expected to close during the fourth quarter of 2012.
Kevin Parker, Deltek's president, CEO and Chairman of the board stated, "This deal with Thoma Bravo delivers significant value to all of our existing shareholders and gives us a partner that is committed to Deltek's mission of being the industry standard solutions provider to project-based businesses worldwide."
Deltek said its board of directors has unanimously approved the definitive agreement. In addition, its largest shareholder, New Mountain Capital, has consented in favor of the acquisition. New Mountain Capital, a New York-based private equity firm, holds 100 percent of Deltek's Class A stock and 59.5 percent of its common stock.
Deltek added that no further approval of its stockholders is required to approve the deal. After the deal closure, Deltek will remain headquartered in Herndon, Virginia and will continue to be led by its existing senior management team.
In the transaction, Greenhill & Co. acted as lead advisor and facilitator and Fried, Frank, Harris, Shriver & Jacobson served as a legal advisor to Deltek. Credit Suisse Group AG also acted as an advisor.
Jefferies & Company, Inc. served as lead financial advisor to Thoma Bravo, and Jefferies Finance LLC and RBC Capital Markets provided financing commitments to the firm. Kirkland & Ellis LLP served as legal advisor to Thoma Bravo.
In its recent second quarter, Deltek reported a profit, compared to a loss last year, driven mainly by lower operating expenses.
PROJ closed Friday's regular trading at $14.01 on the Nasdaq.
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by RTT Staff Writer
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