Thoma Bravo Is Said in Advanced Talks to Buy Coupa Software

Ed Hammond, Michelle F. Davis and Davide Scigliuzzo, Bloomberg News

In this photo illustration the Coupa Software logo is seen displayed on a smartphone. Photographer: Rafael Henrique/SOPA Images/LightRocket/Getty Images , Photographer: Rafael Henrique/SOPA Images/LightRocket /Getty Images

(Bloomberg) -- Thoma Bravo LLC is in advanced talks to acquire Coupa Software Inc. after outbidding Vista Equity Partners, according to people familiar with the matter.

A deal for the San Mateo, California-based company could be announced as soon as this week, said the people, who asked to not be identified because the matter isn’t public. No final decision has been made and talks could fall through, the people said.

Representatives for Thoma Bravo and Coupa Software didn’t respond to requests for comment.

Vista, another technology focused private equity firm, had earlier been in talks to buy Coupa, Bloomberg News previously reported.

The market for tech buyouts has been busy despite financing being harder to come by. If talks are successful, it would cap off a year of sizable take-privates for Thoma Bravo, including Anaplan Inc., Sailpoint Inc. and Ping Identity.

Bloomberg reported on Friday that private credit funds were pulling together debt packages for a buyout of Coupa.

Coupa fell 2.5% to close at $62.09 in New York trading Friday, giving the company a market value of about $4.7 billion.

Coupa provides so-called business-spend management software, which helps companies track and manage the purchasing of goods and services. Customers have included Nestle SA and Groupon Inc., according to its website.

Shareholder pressure

It couldn’t be learned what Thoma Bravo would pay for Coupa, whose shares have struggled this year. Some investors in Coupa have been vocal about what they believe the company should be worth.

Earlier this week, HMI Capital Management, a top shareholder in Coupa, said the software company should fetch at least $95 a share in a sale. Another shareholder, Meritage Group, has also been in touch with Coupa on its views on the company’s value.

Billy Montana, a partner and portfolio manager at Jackson Square Partners, said in an email Friday that his firm owns 1.8 million shares and has told Coupa’s board it supports them in engaging with interested buyers to determine if there’s an attractive acquisition offer.

“An adequate takeout premium would represent immediate and certain value creation in an uncertain environment,” Montana said.

Coupa, led by chief executive officer Rob Bernshteyn, went public in 2016 at $18 a share.

--With assistance from Katie Roof and Scott Deveau.

(Updates with background starting in fifth paragraph)