Coupa Software to Go Private in $8 Billion Thoma Bravo Deal

Coupa Software (COUP:US) announced a deal which will see it become a private company after the equity firm Thoma Bravo agreed to pay $81 in cash for each COUP share.

The take-private deal values COUP at $8 billion after weeks of speculation on who will win the bidding war. Coupa shares soared in late November on reports that the private equity company Vista Equity Partners was in talks to take the business-spending software maker private.

The takeout price represents a nearly 80% premium relative to COUP’s closing price on November 22, a day before media reports surfaced discussing the possible sale. The deal represents another major take-private transaction by tech-focused Thoma Bravo, after a series of mostly cybersecurity M&A deals announced in 2022.

Like many other high-growth tech stocks, Coupa’s shares have been crushed in 2022 in response to the aggressive tightening of monetary conditions by the Fed. Shares hit an all-time low in November after falling nearly 90% from the 2021 peak. 

This means that many Coupa investors are underwater despite Thoma Bravo paying a healthy premium. Congress members, such as Ro Khanna, were buying COUP shares earlier this year at prices exceeding $100 per share. Khanna’s last transaction involving Coupa stock was recorded on May 05, when the Congressman bought $1,000 - $15,000 worth of shares.

Similarly, Senator Ron Wyden sold Coupa shares in November, about 2 weeks before media reports about the potential sales emerged. Senator Wyden sold $15,000 - $50,000 worth of Coupa shares at prices around $55 per share, a significant discount relative to the takeout price.

Thoma Bravo’s acquisition of Coupa Software is expected to close in the first half of the next year.