Software Company Blue Prism Agrees to $1.5B Sale

Blue Prism, a software company based in the UK, has agreed to a $1.5 billion sale to private equity firm Vista Equity Partners in an all cash transaction.

The company announced that Vista would pay each shareholder £11.25 per share, a 35% premium to the company’s last closing price of £8.32.

The company is among a multitude of British firms that have attracted interest from U.S. private equity investors lately.

Compared to U.S. based rivals, including UiPath and Automation Anywhere, the price for Blue Prism comes at a steal.

It was also earlier this year that security firm Proofpoint agreed a $12.3 billion sale to Thoma Bravo.

“Combining with Vista and TIBCO will ensure we remain at the forefront of the next generation of intelligent automation,” said Jason Kingdon, chairman and CEO of Blue Prism.

“We can expand the range of products we offer our customers, with TIBCO’s global footprint and technologies; and, as a privately owned company, we will also have greater access to capital to pursue new growth opportunities via product investment and other potential M&A.”

Shares of Blue Prism dropped 2.6% Tuesday morning on the news.

Activist investor Coast Capital, which owns 3% of Blue Prism, had expressed concern about the valuation of the company amid speculation it was set to be taken over by private equity buyers.

The investor however is in support. “Coast will be supportive of whatever deal gives the company the best opportunity to improve its prospects,” the firm’s founder, James Ratesh, told Bloomberg last week.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.