UPDATE 3-Informatica to go private in $5.3 bln leveraged buyout

Tue Apr 7, 2015 5:05pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds Breakingviews link)

By Devika Krishna Kumar and Greg Roumeliotis

April 7 (Reuters) - Business software maker Informatica Corp said it would be bought for about $5.3 billion by private equity firms Permira Funds and Canada Pension Plan Investment Board (CPPIB), in the biggest U.S. leveraged buyout so far this year.

Informatica shareholders will get $48.75 per share in cash. The company's shares rose 4.5 percent to $47.93 in early trading on Tuesday.

The stock rose 4 percent on Monday after Reuters reported that Permira/CPPIB and a partnership of Thoma Bravo LLC and Ontario Teachers' Pension Plan had submitted bids for Informatica.

Activist hedge fund Elliott Management Corp disclosed an 8 percent stake in Informatica in January and said it was speaking to the company about ways to maximize shareholder value.

Reuters reported in February that Informatica was looking to hire financial advisers to help it defend itself from Elliott, after failing to sell itself in January.

Jesse Cohn, head of U.S. equity activism at Elliott told Reuters on Tuesday that the hedge fund supported the deal.

Technology companies have been targeted by activist investors as the sector evolves rapidly and older technology companies sit on large amounts of cash.   Continued...