Canada Pension Plan Investment Board and Permira have agreed to buy Informatica Corporation (NASDAQ:INFA) in what would be the biggest LBO of the year. As per the reports, the total cost of this leverage buyout will be $5.3 billion, thus making it the biggest transaction of the year.
What’s And How’s For INFA Shareholders:
Shareholders of Informatica will get $48.75 in cash for every share they hold. The offered price is 6% higher than Monday’s closing price of $45.83. The entire information was made public through a statement on Tuesday. Year 2015 has proved to be quite positive for the company as it has gained as much as 20% in stock market latest by April 6, 2015.
Redwood City, California-based Informatica is a renowned software company and has been a target for many investors throughout last few months. As per the information revealed by one of the people familiar with this matter, Elliott Management, an activist investor pushed the company for a sale lately. It’s not the first time when Elliot has tried to do something like that. Under the sound leadership of Paul Singer, Elliot has successfully converted sales deals with many software companies including BMC Software Inc. and Riverbed Technology Inc.
Sohaib Abbasi, Chief Technology Officer, Informatica Corporation (NASDAQ:INFA) has played an integral role in executing this deal. He got appreciation from Jesse Cohn, Head of U.S. Equity Activism, Elliot. Cohn stated in a mail that Abbasi and his board members did a tremendous work to add value to all the shareholders.
The volume of LBOs was very low in the first quarter of 2015, but it will bolster after the execution of this deal. Total LBOs in the first three months of 2015 surpassed $37.1 billion, which is 3.4% lesser than the previous year and 32% lesser than the previous quarter.