Solera has agreed to be acquired by Vista Equity Partners in a deal worth approximately $6.5 billion.
The deal, announced on Sunday, is expected to boost Vista's position as a collector of enterprise data specialist firms. A person familiar with the matter told Reuters the deal is the largest in the company's history.
Solera is an insurance-based software development company, specializing in risk, asset management and enterprise applications. Founded in 2005, the Westlake, Texas-based firm caters for over 120,000 customers in over 75 countries and claims to process over 230 million transactions annually.
The buyout, worth roughly $6.5 billion including the transfer of existing net debt, allows Vista to acquire 100 percent of outstanding shares of Solera common stock for $55.85 per share -- which represents an unaffected premium of 53 percent over Solera's closing share price of $36.39 based on market conditions on August 3.
The merger will be financed through investment provided by Vista partners including Koch Equity Development and an affiliate of Goldman Sachs & Co., as well as existing and new debt financing.
Solera's board of directors unanimously approved the deal and has recommended shareholders follow suit. There are no further financial conditions tied to the acquisition.
Tony Aquila, Solera's founder, Chairman and CEO commented:
"This transaction delivers immediate compelling value to our stockholders and represents a pivotal milestone for Solera in partnering with Vista.
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. We are extremely excited about working with Vista to further strengthen Solera's global leadership in risk and asset management technologies."
Last month, Solera said the company was exploring "strategic alternatives." Rothschild Inc. was brought on board as an advisor while Vista has secured the services of JP Morgan Securities pending the deal's finalization.
The deal will be closed no later than Q1 2016 pending regulatory approval.
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