Compuware has inked a definitive deal to be bought by major private equity investment company Thoma Bravo, LLC.
The deal is worth around $2.5 billion.
The deal, which would close by early 2015, is subject to approval from Compuware's stakeholders, regulatory approvals, and other customary closing terms.
The Compuware board of directors has granted unanimous approval to the deal and has advised the company's stakeholders to approve the transaction.
CEO of Compuware, Bob Paul, said : "Compuware is the clear established leader in the categories of application performance and mainframe productivity tools, and this transaction is the capstone to a series of transformative company initiatives to relentlessly drive value, said. We began with the IPO of Covisint, initiated a robust dividend, divested non-core operations, and aggressively reduced corporate expenses. Compuware is now best suited to focus on its core mainframe and APM businesses as a private-equity backed company, where we can continue to serve our customers in a competitive environment with greater flexibility to take a long-term approach."
Orlando Bravo, a managing partner at Thoma Bravo, added : "Organizations are increasingly relying on mission-critical technologies and applications to reach customers and grow their businesses, and Compuware s solutions, including Compuware APM, are the leading choice by many of the world s largest organizations for ensuring those applications perform seamlessly. Becoming a private company will enable this established market leader to leverage strategic product and other growth opportunities that will take Compuware to the next level."
Independent Chairman of the Compuware Board, Gurminder S. Bedi, said : "This is the right transaction for Compuware at the right time, and reflects a thorough Board review of strategic alternatives and the work of a committee established earlier this year to focus on value-generating steps. This agreement provides shareholders with immediate and substantial cash value, a significant premium to our share price, and the ability to complete the Covisint spin-off to shareholders. Thoma Bravo is an ideal partner for Compuware, adding significant application software, services, and financial expertise."
A managing partner at Thoma Bravo, Seth Boro, said : "We have been incredibly impressed with the business that the Compuware management team has built, and look forward to working with them on this next stage of growth for the company. The APM and Mainframe Productivity Tools markets are exciting and ever-evolving industries, and we re confident that our partnership with Compuware will enhance its position as the market leader and fuel further innovation that will benefit customers."