Qlik Announces Thoma Bravo Buyout Deal

After 6 years trading on the Nasdaq, Qlik Technologies Inc. announced it had agreed a buyout by prolific private equity firm Thoma Bravo LLC in a deal valuing the company at $3 billion.

Under the terms of the buyout, Qlik shareholders will receive $30.50 in cash for each share of Qlik common stock they hold. This price represents a premium of 40% to the Company’s unaffected 10 day average stock price prior to March 3, 2016 of $21.83. However, some analysts have suggested that this significantly undervalues the company after Qlik stock had declined 8.5% since the beginning of the year. Stock prices had bounced back more than 4% on the back of the announcement. The proposed transaction is expected to close in the third quarter of 2016, subject to approval by Qlik’s shareholders and regulatory authorities.

“We believe the proposed transaction is in the best interest of Qlik’s shareholders and provides the Company with additional flexibility to execute our strategic plan as we continue to diligently provide customers with the premier products and services they have come to expect,” said Lars Björk, Chief Executive Officer of Qlik. “Thoma Bravo recognizes the value that Qlik delivers – a platform that lets our customers see the whole story that lives within their data. Thoma Bravo has an excellent track record of investing in outstanding technology businesses for the long-term, and I am confident our employees, customers and partners will greatly benefit from our partnership with them.”

The deal comes after a warning from hedge fund Elliott Management Corp, which owns an 8.8% stake in Qlik. In March they had said Qlik’s current share price made them ripe for being taken over by a larger technology peer.

Thoma Bravo have a track record of investing in technology companies having previously purchased SolarWinds Inc. in a $4.5 billion deal that closed a few months ago. And before that, Thoma Bravo took software specialist Compuware Inc. private for $2.5 billion. Both companies were sold after similar pressure from Elliott Management Corp.