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Shares of Tibco Software (NASDAQ:TIBX) are trading roughly 21% higher this morning after it agreed to accept a buyout offer from private equity firm Vista Equity Partners.
Why it's happening
Vista's $4.3 billion offer -- which includes the assumption of Tibco's debt as well as a $3.98 billion buyout of outstanding shares -- values Tibco's shares at $24 apiece, which is roughly 2% higher than the current price of $23.60 around which shares are currently trading. The deal caps off what was a rather frenetic review of Tibco's options following activist push on Aug. 12th from Praesidium Investment Management, Tibco's sixth-largest shareholder, in search of just such a sale. The deal is expected to close in the fourth quarter.
Alex Planes has no position in any stocks mentioned. The Motley Fool recommends Tibco Software. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.