(Bloomberg) -- Private equity firm Permira and the Canada Pension Plan Investment Board agreed to buy Informatica Corp. in a $5.3 billion transaction, the largest leveraged buyout this year. Informatica stockholders will receive $48.75 a share in cash, according to a statement Tuesday. That’s 6.4 percent higher than the closing price of $45.83 on Monday. The stock has gained 20 percent this year.
The software company, based in Redwood City, California, was a target of activist investor Elliott Management, which amassed a stake and pushed for a sale, a person familiar with the matter said in January. Elliott has successfully pushed for deals at other technology companies, including Riverbed Technology Inc. and BMC Software Inc.
Informatica makes tools to help companies link together and manage large amounts of data. Like other traditional enterprise technology companies, it has been forced to change its products to respond to businesses storing more data in computers operated by third parties, such as Amazon.com Inc., and purchasing software via subscriptions rather than upfront license fees.
Private equity firms and other strategic buyers have embraced enterprise software, attracted by strong recurring revenue once businesses install the technologies that connect new products to existing systems.
“We are very excited about the company’s ongoing transition to cloud- and subscription-based services, as well as its continued pursuit of four separate billion-dollar market opportunities in cloud integration, master data management, data integration for next-generation analytics, and data security,” Brian Ruder, a partner at Permira, said in the statement.
London-based Permira, which traces its origins back to investment bank Schroders Plc, has a background in investing in technology, media and telecommunications companies. The firm has owned stakes in companies including television producer All3Media Ltd. and satellite group Intelsat SA.
The companies expect the transaction to be completed in the second or third quarter.
-- With assistance from Beth Jinks and Jack Clark in San Francisco, Kiel Porter in London and Cecile Daurat in Wilmington.
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