Dive Brief:
- Technology business management company Apptio announced on Sunday that Vista Equity Partners, a software, data and technology investment firm, will acquire Apptio's outstanding shares for more than $1.9 billion.
- The deal, pending antitrust and shareholder approval, is expected to close in Q1 of 2019 and will make the software company private again. It also includes a month-long "go-shop" period during which Apptio's board can solicit and evaluate alternative acquisition proposals.
- There is room for Apptio to find another buyer. However, with Vista paying a 53% premium for stockholders, a comparable bid would be difficult to find, reports TechCrunch.
Dive Insight:
Apptio was founded in 2007 and rode the rising wave of the cloud software to a 2016 IPO. After a few months of decline, the company's value rose relatively steadily since March of 2017 to an all-time high of $41.23 in mid-September. Over the last two months, the company's stock slid along with the rest of the tech industry.
Following news of the acquisition, however, Apptio jumped from Friday's two-month low below $25 to slightly under $38 on Monday.
Apptio can be credited for coining the term "technology business management" and establishing the TBM Council in 2012, Seeking Alpha's Ryan Zentko wrote in a September analysis of the company's growth. The nonprofit council works to help technology organizations establish best practices, collaboration, standardization and innovation.
TBM helps a business keep track of its business infrastructure and track costs. With more than 80% of businesses using a multicloud or hybrid cloud strategy, managing the web of investments and costs across an organization helps build transparency, efficiency and informed decision-making.
Zentko speculated that ServiceNow, Apptio's main competitor, could try to acquire the company instead of competing with it. Any action on that front would need to be taken in the 30-day "go-shop" window.
