Compuware goes private in $2.5 billion deal

Compuware goes private in $2.5 billion deal

Summary: Compuware becomes the second mainframe and applications management company to go private in recent months as it sells to Thoma Bravo.

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Compuware said it was selling the company to private equity firm Thoma Bravo in a deal valued at $2.5 billion.

The enterprise software company, which primarily offers mainframe operating software, has been retooling, divesting units and fending off activist investors. Compuware also spun off its Covisint unit recently.

Those moves refocused Compuware on its mainframe and application performance monitoring software. As a private company Compuware and Thoma Bravo said they will be able to take a long-term strategic view and focus on returns.

Here's a look one of Compuware's key software tools. 

compuware1

Compuware going private follows a similar move by BMC Software. Dell is another large tech vendor that has gone private and appears to be reinvigorated. With Compuware and BMC both going private, investors are likely to wonder about CA Technologies, another mainframe software player.

Under terms of the deal with Thoma Bravo, Compuware shareholders will get $10.92 a share, a 17 percent premium to Friday's closing price. Thoma Bravo will pay $10.43 in cash for each share of Compuware. That amount is pro rated for the spin off of Covisint.

Compuware has a 60 day window to find a better bid.

The deal is expected to close in early 2015. Thoma Bravo also owns Blue Coat Systems, Deltek, Empirix, Flexera, Keynote Systems and Landesk Software among others.

Topic: Enterprise Software

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