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Anaplan to go private in $9.65 billion deal with Thoma Bravo, shares jump -Breaking


© Reuters. FILE PHOTO : An Anaplan, Inc. banner hangs from the New York Stock Exchange facade (NYSE), to mark the company’s IPO, New York, U.S.A, October 12, 2018. REUTERS/Brendan McDermid

(Reuters). -Shares Anaplan Premarket trading for Inc rose more than 26% Monday following the agreement to take Thoma Bravo LP private. This is a signal of growing private equity in cloud-based software.

Anaplan Investors will receive $66 for every share they hold, an increase of over 30% from Friday’s close price.

Cloud demand has increased due to pandemic-driven lockdowns that have accelerated digital transformations within enterprises. Anaplan missed the opportunity to profit from this boom which saw software companies’ shares rise by 36% last year.

Anaplan is a provider of planning software for businesses. They help with forecasting and have more than 1900 customers around the world.

Anaplan was pressed to change by hedge fund Sachem Head Capital Management last month when it took nearly 5% of the stock.

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Thoma Bravo Software, which manages more than $103 trillion in assets, will be focusing on Anaplan’s platform and branding. This is to help grow the business. This deal should close within the first half this year.

This highly leveraged takeover is the latest development in the sector of software, and has drawn the attention of private equity investors.

Numerous software companies have taken the route of go-private, which is seen as an opportunity to increase their business in times of change.

Citrix Systems, the software company that developed Citrix (NASDAQ:), said in January it would go private for $16.5 Billion including debt from affiliates of Elliott Management or Vista Equity Partners.

Wall Street Journal reported the first news on the Anaplan transaction, with an enterprise value estimated at $10.7 billion.

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