UPDATE 4-Vista Equity to buy Tibco Software for $4.3 billion

Mon Sep 29, 2014 4:30pm EDT
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(Adds analyst quote, closing price)

By Liana B. Baker

Sept 29 (Reuters) - Business software maker Tibco Software Inc on Monday agreed to be bought by private equity firm Vista Equity Partners for $4.3 billion, the latest software company to go private after becoming a target for activist investors.

Vista will pay $24 per share in cash for Tibco. That would be a 26 percent premium to the stock's closing price on Sept. 23, the day before Reuters reported that several private equity suitors, including Vista, were vying for Tibco.

Shares of Tibco closed 21.2 percent higher at $23.65.

Tibco, following the likes of Compuware and BMC Software, is the latest enterprise software company to go private. Its board had come under pressure from activist investors Praesidium Investment Management Co LLC and Starboard Value LP.

The Palo Alto, California-based company develops software that companies use in processes such as inventory keeping and cross-selling products.

Tibco's share price has fallen 25 percent in the last 12 months as the company's products, including flagship data platform Spotfire, have come under competitive pressure.

The company, which has been facing declining software revenue, had been reviewing its strategic options since Aug. 16.   Continued...