Apptio Inc. (NASDAQ: APTI) shares absolutely exploded on Monday after the company announced that it would be acquired by an affiliate of Vista Equity Partners, a leading investment firm focused on software, data and technology-enabled businesses.
Under the terms of the agreement, Vista will acquire all outstanding shares of Apptio common stock for a total value of roughly $1.94 billion. Apptio shareholders will receive $38.00 in cash per share, representing a 53% premium to the unaffected closing price as of November 9, 2018.
Note that this deal is still subject to customary closing conditions, including the approval of Apptio shareholders and antitrust approval in the United States. The transaction is expected to close in the first quarter of 2019 and is not subject to a financing condition.
The merger agreement also includes a 30-day “go-shop” period for Apptio’s board of directors.
Sunny Gupta, co-founder and CEO of Apptio, commented:
Since founding, our focus has been on building the next great cloud software platform by dedicating ourselves to helping companies of all sizes and industries manage, plan, and optimize technology investments across their hybrid IT environments. As we look to the next chapter of Apptio, we are thrilled to provide immediate liquidity to our shareholders at a significant premium to market prices and we remain deeply committed to our mission, product innovation, geographical expansion, and the work of the TBM Council. Vista’s investment and deep expertise in growing world-class SaaS businesses and the flexibility we will have as a private company will help us accelerate our growth while helping us maintain our commitment to creating wildly successful customers.
Shares of Apptio were last seen up about 51% at $37.62, in a 52-week range of $21.15 to $41.36. The stock has a consensus analyst price target of $34.71.