Solera Holdings said Sunday that it has agreed to be taken private by Vista Equity Partners for approximately $6.5 billion, or $55.85 per share, including the company’s net debt. Investors joining Vista include Broad Street Principal Investments, a Goldman Sachs Group affiliate, and an investment subsidiary of Koch Industries. If there is any agreement is reached, the merger will too place during the first calendar quarter of 2016.
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The announcement comes less than a month after Solera Holdings announced in late August that it was exploring a range of strategic alternatives. That’s a 13 percent premium to the Westlake, Texas, company’s Friday closing price of $49.45.
The deal will be closed no later than Q1 2016 pending regulatory approval. It is safe to say that private equity firms are now focusing on the acquiring data and software companies which can have potential upside for the future.
“It not only recognizes our innovative company and talented employees, but also provides us with the optimal flexibility to proliferate our world-class solutions and services for our customers”, he said.
Sources familiar with the firm have said that Vista Equity’s strategy of focusing on its C-suite has been particularly pivotal in its dealmaking and that Smith views attracting founders and CEOs as a core part of the shop’s DNA.
Aquila also added in the press release that they are excited to be “working with Vista to further strengthen Solera’s global leadership in risk and asset management technologies”.
Existing debt financing as well as new debt financing for the deal, which has been approved by Solera’s board, has been committed to by Goldman Sachs Bank USA and Goldman Sachs Lending Partners LLC, Solera said.
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Founded in 2005 by Aquila and private equity firm GTCR Golder Rauner LLC, Solera offers software and other related services to the automobile claims processing industry. “The mission is clear and the opportunity is there to continue to transform how physical assets are managed and insured”. One of its significant acquisitions is Automated Insights, which generates financial information articles pertaining different companies. The firm bought Sedgwick Claims Management Services Inc for $2.4 billion.
