Tuesday's Headlines: Thoma Bravo is Taking Coupa Private at $8 billion
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Coupa Software (COUP) +26.7%
Under Armour (UAA) +10.1%
DocuSign (DOCU) +10.0%
Smartsheet (SMAR) +8.2%
PagerDuty (PD) +7.4%
Moving Down ⬇️
Baozun (BZUN) -13.4%
RH (RH) -7.8%
Tesla, Inc. (TSLA) -6.3%
StoneCo (STNE) -3.7%
IMAX (IMAX) -3.1%
Sam Bankman-Fried Arrested in the Bahamas 👮
In the latest chapter of the FTX saga, former Chief Executive Sam Bankman-Fried has been arrested in the Bahamas after the United States brought formal criminal charges against him.
According to sources who spoke to The Wall Street Journal, a sealed indictment was filed in the Southern District of New York that accuses Bankman-Fried of wire fraud, securities fraud, securities fraud conspiracy, and money laundering.
The Royal Bahamas Police arrested the disgraced executive on Monday evening with little incident. Local authorities were eager to work with the U.S. as Bankman-Fried’s offenses “also violate laws of the Commonwealth of The Bahamas”. He will appear in Magistrate Court on Tuesday in Nassau.
It is believed Bankman-Fried may attempt to resist extradition back to the United States where he will likely face a lawsuit from the Securities and Exchange Commission for violations of U.S. securities laws.
Bankman-Fried was initially expected to testify before Congress today on the collapse of FTX but it is now believed acting CEO John Ray III will take his place.
Thoma Bravo is Taking Coupa Private at $8 billion 💰
Coupa Software has agreed to be taken private by the private equity firm Thoma Bravo for a fee of $8 billion. The acquisition price of $81 a share is 31% higher than Coupa’s closing price on Friday before the announcement.
The deal is the latest in a swath of acquisitions of public software companies by private equity firms, which we discussed in last week’s Stock Club podcast. With the downturn in the market hitting tech stocks particularly hard, opportunistic investors are spotting bargains as software multiples are trading at multi-year-lows. Coupa’s $81 buy price is down almost 80% from its all-time highs set in 2021.
Thomas Bravo is a renowned takeover firm, and Coupa is now its fifth such acquisition this year after Anaplan, Ping Identity, ForgeRock, and Sailpoint Technologies. The deal is financed primarily by debt, with a minority stake put up by Abu Dhabi’s sovereign wealth fund. Coupa shareholders will receive $81 for each share they own once the deal has been completed.
Weber Goes Private with BDT Capital 🍴
Famed grill maker Weber Inc stated on Monday it has agreed to be taken private by controlling shareholder BDT Capital Partners in a $3.7 billion deal.
BDT already controls 48.2% of Weber and will buy up the company’s remaining shares for $8.05 per share. The deal represents a 60% premium to Weber’s closing price on October 24th, the day before BDT submitted its takeover offer. Under the deal, which was unanimously approved by a committee of independent directors, Weber will receive an additional $350 million as a loan.
Weber debuted on public markets in the summer of 2021 in a tumultuous IPO fueled by pandemic-driven sales growth. The market seems to have seen through these short-term gains, however, as the Illinois-based company initially marketed 47 million shares but could only shift 18 million on its first day. This cold reception set the tone for the entirety of Weber’s existence as a public entity. The company’s stock fell below its $14 IPO price in November of 2021 and never recovered. This summer Weber was forced to replace its CEO, suspend its dividend, and cancel its full-year guidance.
Shares in Weber have jumped more than 23% since the news broke.