Solera Holdings, a provider of risk and asset management software and services to automotive, property marketplace and insurance companies, has entered into a merger agreement with an affiliate of private equity firm Vista Equity Partners for $6.5 billion, including its existing debt.
Pursuant to the merger agreement, Vista will acquire 100% of the outstanding shares of Solera common stock for $55.85 per share in cash. The purchase price represents a premium of 53% over Solera’s closing share price of $36.39 on August 3, and a 13% premium to Solera’s share price on Friday, when the stock closed up 3.9%.
The closing of the merger, expected to close by the first calendar quarter of 2016, is conditional upon mandatory Solera stockholders’ and regulatory approvals.
“This transaction delivers immediate compelling value to our stockholders and represents a pivotal milestone for Solera in partnering with Vista,” said Tony Aquila, Solera’s founder, chairman and CEO in a statement. “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.”
Vista expects the acquisition to enhance its position as an acquirer of data companies and enterprise application software.
The deal is to be financed through a combination of common and preferred equity contributions by investment funds affiliated with Vista, Koch Equity Development, and an affiliate of Goldman Sachs, Solera said.