May 26, 2022

It’s a little unusual for big tech news to hit on a Sunday night, but it happened last night when private equity firm Thoma Bravo announced it was acquiring Anaplan, a SaaS financial planning tool, for $10.7 billion. The company closed on Friday with a market capitalization of $7.4 billion.

Anaplan’s share price has been falling over the past six months, with its price dropping by more than 22%. It has fallen by a more modest 7% over the past year, but a private equity firm saw an opportunity, jumped at it, and offered Anaplan, which was near its peak value in six months, to close the deal.

In its latest earnings report earlier this month, the company reported a sales increase of more than 30% to $163 million, but losses rose to $53.8 million from $41.5 million in the same quarter last year. . Anaplan forecasts modest sales growth for the next quarter, and inventories have actually increased since the release of the report.

A 30 percent growth rate is what private equity firms like because it gives them the opportunity to work. Thoma Bravo’s managing partner, Holden Spahat, loves running the financial planning service and believes his company can help it grow.

“We have been following Anaplan for many years and have seen the incredible value it brings to customers with our best-in-class planning platform. We look forward to leveraging Thoma Bravo’s extensive operating and investment experience in enterprise software to support Anaplan’s future growth,” Spahat said in a statement.

Many executives say they love the company, have followed it for years and immediately joined when they saw an opportunity.

Anaplan was popular for a while from 2016 to 2018, providing companies with a more modern way to create financial planning and reporting without having to resort to Excel spreadsheets to complete them.

It was launched in 2006 and has earned nearly $300 million. The final increase was $60 million at a $1.5 billion valuation, which seems like a bit much today, but in 2017 it was a staggering estimate. The company went public in 2018 with great fanfare, closing at 42% on the first day.

The deal is expected to close sometime in the first half of this year, but is subject to regulatory oversight and shareholder approval. Anaplan’s Board of Directors has already approved the deal.

Anaplan shares rose more than 7.5% ahead of trading.

Leave a Reply

Your email address will not be published.