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TIBCO Software Inc.

 
 

AVR Status

TIBCO reported approval of the Merger Agreement by holders of 67% of outstanding shares on December 3, 2014, and the merger became effective on December 5, 2014.

Shareholders who satisfied requirements for an appraisal demand will be able to decide whether to hold or sell the rights, or simply withdraw the demand at any time up to 60 days after the effective date of merger to accept the $24.00 per share offer price.

 
     

Forum reference:

Management seeks private equity buyout partners under activist pressure

 

Source: The Wall Street Journal, August 6, 2014 article

THE WALL STREET JOURNAL.  |  Markets

Deals & Deal Makers

Tibco Reaches Out to Potential Buyers
 Business Software Maker Has Approached Possible Suitors, Including Private-Equity Firms

  

By Dana Mattioli, Gillian Tan and Shira Ovide

Updated Aug. 6, 2014 7:22 p.m. ET

Business-software firm Tibco Software Inc. has been approaching potential suitors, including private-equity firms, according to people familiar with the matter.

The early-stage sale talks aren't part of a formal process and are being spearheaded by Tibco Chief Executive Vivek Ranadivé, the people said.

The sale talks come after months of difficulties for Tibco. The company has fallen short of earnings expectations, and its Spotfire data software has lost ground to rivals. Its stock price had fallen 14% this year through Tuesday's market close.

Tibco shares closed up 7.5% on Wednesday at $20.75, after The Wall Street Journal reported the company had approached possible buyers. Tibco has a market capitalization of about $3.4 billion.

The company's sliding stock price drew the attention of Praesidium Investment Management Co., which owns more than 3% of Tibco's stock. In a letter to Tibco's board in June, Praesidium said it would share with other stockholders and potential acquirers its analysis for ways the Tibco board can boost the stock price.

Praesidium—Tibco's fourth-largest shareholder, according to S&P Capital IQ—said in its letter that it sees "a substantial opportunity to unlock value" in "a company that is currently falling far short of its significant potential."

In a June interview, Mr. Ranadivé acknowledged Tibco had slipped up but said the company was taking steps to revamp some of its products, management structure and sales strategy. "We hit a speed bump," Mr. Ranadivé said. "You don't want to waste a time of crisis. You want to put it to good use."

Mr. Ranadivé has pledged to improve Tibco's data-analysis business. Businesses are eager to harness reams of information about customers to better pitch their products, but Tibco's Spotfire data software lost out on sales to rivals like Qlik Technologies Inc. and Tableau Software Inc., which have relatively easy-to-use tools to make charts and graphs displaying data.

"We got complacent," Mr. Ranadivé said.

Tibco this spring purchased data-analysis company Jaspersoft Corp., and Mr. Ranadivé put the head of Jaspersoft in charge of Tibco's data-analysis businesses.

Tibco last week amended its executive change-in-control and severance plan, which are sometimes known as golden parachutes. The new plan allows key executives to receive a more generous exit package should Tibco be acquired. In a filing, the company said its compensation committee believes the changes "more closely align with current market practices and create appropriate incentives for our management team."

Write to Dana Mattioli at dana.mattioli@wsj.com, Gillian Tan at gillian.tan@wsj.com and Shira Ovide at shira.ovide@wsj.com

 

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