London-based Permira and the Canada Pension Plan Investment Board will take Informatica Corporation, the leading independent provider of enterprise data integration software and services, private for approximately $5.3 billion. The transaction represents the largest LBO so far this year.
Under the terms of the deal, shareholders of the NASDAQ listed company will receive $48.75 in cash per share.
The company says it plans to use the investment to transition to a cloud-based platform and offer subscription based services.
In a statement, Permira and CPPIB cited four separate billion dollar market opportunities for Informatica in cloud integration, master data management, data integration for next generation analytics, and data security.
Sources familiar with the transaction say the investment will come from Permira’s fifth fund, which closed on its €5.3 billion hard cap last year, according to Private Equity International’s research and analytics division.
Permira and CPPIB beat out a rival bid from Thoma Bravo and the Ontario Teachers’ Pension Plan, Reuters reported on Monday. The company was reported to be facing activist shareholder pressure to increase value from Elliot Management which has an 8 percent stake in the company.
“While delivering immediate compelling value to our shareholders, we remain committed to the long-term success of our customers, partners, and employees. Permira and CPPIB share both our vision for Informatica to power the data-ready enterprise and our conviction in sustained long-term growth,” Sohaib Abbasi, chairman and chief executive officer, Informatica said in a statement.
The transaction is expected to close in the second or third quarter of this year.