Vista is all set to acquire U.K. software company for $1.5 billion

The U.K.-based Blue Prism (LON: PRSM), a software company, has agreed to a sale deal proposed by Vista Outdoor Inc (NYSE: VSTO). The U.K.-based firm will be sold for $1.5 billion. It is learned that Blue Prism is one of the companies that has recently caught the attention of U.S. private equity investors.

Here’s how the deal was sealed

Blue Prism specializes in software robots that perform repetitive tasks revealed how the deal was sealed. Additionally, the purchasing company Vista will pay each shareholder a 35% premium against the company’s last closing price. After completing the formalities of the acquisition process, Vista stated that it is considering moving Blue Prism to TIBCO, an enterprise data group.

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Jason Kingdon, chairman, and CEO of Blue Prism said:

Combining with Vista and TIBCO will ensure we remain at the forefront of the next generation of intelligent automation. We can expand the range of products we offer our customers, with TIBCO’s global footprint and technologies; and, as a privately owned company, we will also have greater access to capital to pursue new growth opportunities via product investment and other potential M&A.

Spike in private equity firms eying publicly-listed software companies

There is a spike in private equity firms eying publicly-listed software companies. Earlier this year, Thoma Bravo took over Proofpoint for $12.3 billion. In addition, KKR and Clayton, Dubilier & Rice have purchased Cloudera. The latest entrant in the sector is Blue Prism, a company that has attracted the attention of private equity investors in the U.S. Also on the radar are companies like supermarket chain Morrisons, corporate infrastructure firm John Laing and aerospace group Cobham.

Blue Prism share value slipped 2.6% on Tuesday morning

Activist investor Coast Capital owns close to a 3% stake in Blue Prism, was vocal about how the company will be valued. Eventually, Coast Capital was in favor of the acquisition. In an interview with Bloomberg last week, the firm’s founder, James Ratesh, said:

Coast will be supportive of whatever deal gives the company the best opportunity to improve its prospects.