TIBCO Software goes private with $4.3 billion Vista Equity purchase

September 29, 2014, 4:54 PM UTC
contract armin harris
Kyle Bean for Fortune

TIBCO Software is going private after Vista Equity Partners paid $4.3 billion Monday to purchase the maker of business software in what is the largest technology buyout this year.

Vista, a private equity firm focused on software, data and technology-enabled businesses, will pay $24 a share in cash for TIBCO, the company said in a statement.

Reuters had previously reported that Vista was eyeing TIBCO (TIBX) for a buyout. The purchase price is a 26% premium to TIBCO’s closing price on Sept. 23, prior to any takeover reports.

“The board has unanimously agreed that this transaction is in the best interests of all our stakeholders,” Vivek Ranadivé, chairman and CEO of TIBCO, said in a statement. “Additionally, as a private company, TIBCO will have added flexibility to serve our customers and execute on our long-term strategy.”

TIBCO had considered other strategic and financial buyers as well as financial alternatives beyond a sale, according to company board member David West. Its stock had declined 25% over the past year as the company faced growing competitive pressure and declining revenues.

The software company faced pressure from activist investors Starboard Value and Praesidium Investment Management, according to Reuters.

The move would be a win for Starboard, which has launched other high-profile campaigns recently: The firm is pushing AOL (AOL) and Yahoo (YHOO) to consider a potential tie-up.

The deal is subject to approval by shareholders and regulators and is expected to close in the fourth quarter this year.

Editor’s note: An earlier version of this story incorrectly attributed comments to TIBCO’s West regarding pressure the software company reportedly faced from activist investors Starboard Value and Praesidium Investment. The text has been changed to reflect this.

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