Websense's move on Monday to go private in a deal worth abut $1 billion highlights how tech vendors with slowing growth are shunning the limelight.
San Diego-based Websense, which specializes in security software, will be acquired by Vista Equity Partners for $24.75 a share in cash. The deal comes at a 53 percent premium.
In recent weeks, we've seen the following:
- BMC Software went private.
- Dell has plans to go private, but has had a few complications as business heads south.
- A lot of speculation surrounding companies like CA Technologies going private.
Regarding Websense, Todd Weller, an analyst at Stifel Nicolaus, noted:
Websense has been a company that has struggled to grow over a multi-year basis. We believe part of its challenges have been secular in nature relating to commoditization of its core Web filtering business. Related to this, we believe Websense has also experienced increased competitive intensity.
The other players in the go-private club have similar situations. Dell is hammering margins to preserve PC market share. BMC has some retooling to do too.
The alternative is to remain public and restructure every quarter as companies struggle to revamp while reporting earnings results.