The Clap
Private Equity firm Thoma Bravo agreed to buy software company Anaplan (NYSE: PLAN) for $10.7 billion.
More on Anaplan
Anaplan sells subscriptions for cloud-based business-planning software & analytics services.
The deal
Thoma Bravo’s offer is a 30% premium to Anaplan stock’s most recent closing price. The company will be delisted from the NYSE after the deal closes, which is expected to be in H1-2022.
Why is it delisting?
Anaplan is delisting because it’s going private, hence the “private” in private equity.
Why this matters
Tech stocks have had a rough 2022 so far, & their sharp falls have created buying opportunities for private equity firms. In addition, Anaplan has a negative cash flow, meaning it has more outgoing than incoming money, making it unattractive for loan financing. For Thoma Bravo, it’s been business as usual, according to its Managing Partner.
