Private equity firm Thoma Bravo will buy enterprise software maker QAD for about US$2 billion (A$2.65 billion), the latest go-private deal by the software investor.
QAD shareholders will get US$87.50 per share in cash, a premium of about 20 percent to the company’s last close.
The company’s stock jumped 19.4 percent to US$87.05.
Following the completion of the deal, expected in the fourth quarter of 2021, QAD founder and president Pamela Lopker will retain a significant ownership interest in the company and continue to serve on the board.
Founded in 1979, QAD provides cloud-based planning and resources solutions software to manufacturing companies.
“We believe operating as a private company will allow
QAD to continue its subscription model transition and accelerate its growth and profitability initiatives,” Bhavan Suri, analyst at William Blair, wrote in a note.
Thoma Bravo is one the largest software-focused private equity firms with over US$78 billion in assets under management.
Its portfolio companies include information technology services provider SolarWinds and cybersecurity firm McAfee.
It has annouced deals to take security software vendor Proofpoint and data solution provider Talend to private earlier this year.
Morgan Stanley & Co served as financial adviser to QAD’s special committee, and Moelis & Company advised Lopker. Barclays served as financial adviser to Thoma Bravo.
