(Bloomberg) -- Vista Equity Partners is exploring an acquisition of Coupa Software Inc., according to people familiar with the matter. The stock rose as much as 36% on the news.
Vista has held talks with the San Mateo, California-based company, which is working with an adviser, said the people, who asked to not be identified because the matter isn’t public. Private-credit lenders could provide financing for a potential deal, the people said.
No deal is imminent and Vista could opt against pursuing a transaction, the people said. Other suitors could emerge for Coupa too, they added.
Representatives for Vista and Coupa Software didn’t immediately respond to requests for comment.
Coupa Software rose 34% to $61.42 at 1:43 p.m. in New York trading Wednesday, giving the company a market value of about $4.7 billion. The stock had fallen 77% in the past year before Wednesday’s gain.
Led by billionaire Robert F. Smith, Vista is among the most active private equity investors in the technology sector. The firm agreed to pay $4.6 billion in October for software-security firm KnowBe4 Inc. and struck an $8.4 billion deal in August for Avalara Inc. It used private credit to fund those deals.
Coupa Software 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.
--With assistance from Liana Baker.
(Updates trading in first and fifth paragraphs.)
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