Wednesday, October 1st6.9°C
22738
22916

Private equity firm Thoma Bravo to buy software developer Compuware for $2.5 billion

Private equity firm Thoma Bravo will spend about $2.5 billion to buy Compuware and take the software developer private.

The companies said Tuesday that Compuware stock owners will receive about $10.92 for each share they own. That price includes mostly cash and some stock from Compuware spinoff Covisint.

It represents a premium of about 17 per cent to the Detroit company's Friday closing price. Compuware Chairman Gurminder S. Bedi said in a statement that the deal will give shareholders an immediate cash value and provide an opportunity to complete the spinoff of Covisint, which went public in September 2013.

Compuware said its board unanimously approved the deal and recommends shareholders vote for it as well. The company's largest shareholder, activist investor Elliott Management, has already agreed to vote in favour of the deal.

Elliott holds a 9.6 per cent stake in Compuware Corp. and tried to acquire the remaining stake in the company with a $2.35 billion bid that Compuware rejected last year.

Thoma Bravo and Compuware expect their deal to close early next year.

Shares of Compuware gained more than 12 per cent, or $1.17, to $10.52 in Tuesday morning trading, while broader indexes rose slightly. Covisint shares fell 8.5 per cent, or 41 cents, to $4.40.

The Canadian Press


Read more Business News

23437


Recent Trending




Today's Market
S&P TSX14960.51-16.41
S&P CDNX909.29-3.47
DJIA17042.90-28.32
Nasdaq4493.39-12.462
S&P 5001972.29-5.51
CDN Dollar0.8919-0.0011
Gold1206.50-5.10
Oil89.83+0.07
Lumber333.20+0.30
Natural Gas4.134+0.013

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.26+0.03
Cantex0.065-0.025
Anavex Life Sciences0.184-0.001
Metalex Ventures0.0550.00
Russel Metals34.57+0.08
Copper Mountain Mining2.42-0.10
Colorado Resources0.165+0.015
ReliaBrand Inc0.019-0.001
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.32-0.02

 





FEATURED Property
20862243848 Water Road
10067621 bedrooms
$1,299,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_





23545


Member of BC Press Council


23391