Shareholders will receive $55.85 for each share they own. The companies put the deal’s value at about $6.5 billion, including debt.
To view the full article, register now. A person familiar with the matter told Reuters the deal is the largest in the company’s history. Tony Aquila, founder of Solera said, “This transaction delivers immediate compelling value to our stockholders and represents pivotal milestone for Solera in partnering with Vista”.
At the same time, Solera could make an interesting buyout target for private equity firms precisely because it could utilize and rely on these acquisitions over the next couple of years, sources suggested, adding that despite its aggressive M&A and narrowing margins, Solera is a high-quality asset with predictable long-term revenue streams.
Solera said last month that it was exploring strategic options for the company, forming a special committee and working with Centerview Partners and Rothschild Inc.as financial advisers and Sullivan & Cromwell as a legal adviser. Several private equity firms had been rumoured to be showing interest. The financing for the deal will come from varies outlets besides the Vista, firms like Koch Equity Development, and an affiliate of Goldman Sachs Group Inc.
Solera’s board of directors unanimously approved the deal and has recommended shareholders follow suit.
In a press statement announcing the sale Vista CEO and Chairman Robert F. Smith was quoted as saying, “We are thrilled to be partnering with Solera”. “For nearly half a century, Solera has been serving the insurance and automotive industries with innovative software and information solutions”.
This would be the biggest acquisition ever for Vista, topping the $4.2 billion purchase of Tibco Software Inc. a year ago . It carries out most of its investments in data and software firms. Ltd.’s (QIHU) management has offered to take the China-based company for $9.1 billion and Lone Star Global Acquisitions Ltd. has agreed to pay $6.9 billion for Home Properties Inc.
The deal is expected to close on the first quarter of 2016.
Solera shares (ticker: SLH) jumped on the news, which was released before the opening bell on Wall Street on Monday.