Vista Equity Partners is in the business of acquiring mostly software firms, sold Marketo, a marketing software firm to Adobe Inc for $4.75 billion in September 2018.
Two years after going public, software company Apptio Inc has agreed to be acquired by private equity firm Vista Equity Partners for $1.94 billion.
The all-cash deal sees Vista paying a 53% premium over Apptio’s Friday’s closing price of $38 per share.
According to Sunny Gupta, the company’s co-founder and Chief Executive, the deal will enable Apptio to bring its products to the market much faster.
“In the private construct, we look at leveraging Vista’s playbook,” said Gupta. “They seem to be very committed to accelerating our product innovation cycle to customers.”
Apptio, whose products include cloud-based and hybrid business management software, was founded in 2007 and went public in September of 2016 at $16 per share.
Vista, whose private-equity portfolio comprises of mostly software companies, sold marketing software firm Marketo to Adobe Inc for $4.75 billion in September 2018.
The deal includes a 30-day “go-shop” period, which allows Apptio board and advisers to consider alternative offers, said the company.
Incidentally, Apptio had multiple offers from strategic and private investors before it agreed to go with Vista’s, said Gupta.
After the closure of the deal, Gupta will remain as Apptio’s CEO and Apptio will continue to be headquartered in Bellevue, Washington.
Since Apptio’s board has already approved the deal, it is set to close by the first quarter of 2019.
Qatalyst Partners served as Apptio’s financial adviser, while Wilson Sonsini Goodrich & Rosati was its legal adviser.
Kirkland & Ellis LLP was the legal adviser to Vista.