August 28, 2012 – ERP vendor Deltek Inc. announced it has reached an agreement with investment firm Thoma Bravo for $1.1 billion cash to become a privately held company.
The proposed agreement pays $13 cash per share, 24 percent more than its closing amount on June 11, the day before Deltek shared information on its possible sale to “interested parties” and their advisers on a confidential basis. No further information was available about this shared information or a related dip in its stock price, which had fluctuated after that date but rose on a July story by the Wall Street Journal alluding to an auction of Deltek.
Deltek specializes in professional services software, particularly in government agencies and contractors, and accounting. Last month, the vendor launched a new contract analytics solution, Deltek Capture Analytics, and has offered more of its solutions via the cloud of late.
Deltek was founded in 1983 and is based in Herndon, Va., a suburb of the nation’s capital. It has 1,600 employees and registered $341 million in revenue in 2011, a down year in terms of growth though there have been reported increases in the first half of 2012, according to online filings. President and CEO Kevin Parker joined Deltek in 2004 after a four-year stint at PeopleSoft. Parker said in a news release on the deal that the sale strengthens investments by shareholders and enables Deltek to continue moves into new markets and the development of solutions for “project-based businesses worldwide.”
Thoma Bravo was part of the investment group that bought out computer management software provider Novell for $2.2 billion in 2010, and it has also been involved in the private buyout of database management vendor Embarcadero Technologies.
The deal is subject to closing conditions, but has been approved by the Deltek board of directors and its largest shareholder, New Mountain Capital.