Anaplan (NYSE:PLAN) stock is on the move Monday after the company revealed that Thomas Bravo is acquiring it for $10.7 billion.
Thomas Bravo, an American private equity firm, is offering up $66 per share to acquire Anaplan. This has it valuing PLAN stock at a 46% premium compared to its volume-weighted average price for the five days ending March 18, 2022.
It’s worth pointing out that if the deal goes through, Anaplan stock will no longer be listed on the New York Stock Exchange. While the company’s Board of Directors has approved the deal, it still needs approval from shareholders of PLAN stock, as well as regulators. The company expects the deal to close in the first half of 2022.
The acquisition news for PLAN stock today comes after activist investors took a stake in the company last week. Corvex Management, Sachem Head Capital Management, and JS Capital Management all acquired shares in the company last week for a 9% stake.
So what was behind that buy from activist investors? The firms believed PLAN stock to be overvalued and “an attractive investment opportunity.” That makes sense considering the stock was down roughly 40% year-over-year when those investments were made.
When it comes to analyst opinions on the deal, they seem to be positive. Mizuho’s Siti Panigrahi said the deal doesn’t come as a surprise and could start off more acquisitions in the enterprise software-as-a-service sector. Jefferies analyst Brent Thill said the deal “makes sense” and could represent a large opportunity ahead, Seeking Alpha notes.
PLAN stock is up 27.7% as of noon Monday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
