Vista seals $1bn software take-private

The firm’s acquisition of cloud-based software company ACTIVE Network represents a 111% premium to ACTIVE’s average closing price so far this year.

Vista Equity Partners will acquire NYSE-listed event management software company ACTIVE Network in an all-cash transaction that values the company at about $1.05 billion, according to a statement. 

ACTIVE provides cloud-based software for managing and operating activities, events and organisations. The price of $14.50 per share represents a 111 percent premium to ACTIVE’s average closing price in 2013. The transaction is expected to close by the end of the year.

BofA Merrill Lynch is serving as financial advisor to Vista.

Last month, Vista acquired transportation and logistics software business Omnitracs in an $800 million carve-out from listed wireless technology company Qualcomm.

Vista is investing its $3.5 billion Fund IV that closed in 2012. The firm’s previous vintage vehicle, Vista Equity Partners III, had generated a 34.4 percent internal rate of return and 2.49x total value multiple as of 31 March, according to Oregon Public Employees Retirement Fund documents.  

Vista is in market with its Vista Credit Opportunities Fund I, which is targeting $600 million for investments in first and second lien loans for enterprise software companies in the US mid-market. 

The firm is also raising its second Foundation Fund, which has already surpassed its $500 million target and could raise up to $1 billion, a person with knowledge of the firm told Private Equity International in a prior interview. The fund focuses on small-cap software companies.

Vista was founded in 2000 by Robert Smith, the former co-head of Goldman Sachs’ Enterprise Systems and Storage business, and focuses on investments in technology and software.