Tuesday, September 23rd18.0°C
23284
22934

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

22908


Recent Trending




Today's Market
S&P TSX15125.67-3.33
S&P CDNX925.18-2.91
DJIA17055.87-116.81
Nasdaq4508.688-19.001
S&P 5001982.77-11.52
CDN Dollar0.9030-0.0002
Gold1221.90-0.10
Oil91.50-0.91
Lumber329.10-2.90
Natural Gas3.885+0.016

 
Okanagan Companies
Pacific Safety0.135-0.035
Knighthawk0.01-0.005
QHR Technologies Inc1.26-0.01
Cantex0.05+0.01
Anavex Life Sciences0.20-0.0195
Metalex Ventures0.06+0.01
Russel Metals34.95-0.42
Copper Mountain Mining2.42+0.02
Colorado Resources0.165+0.005
ReliaBrand Inc0.0157-0.0049
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.265-0.005

 



23481

FEATURED Property
17728996 2493 Casa Palmero Drive
1 bedrooms 2 baths
$599,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Is this a fair offer from ICBC?

“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...

_





23448


Member of BC Press Council


22755