Vista Equity Partners’ Robert F. Smith mulls sale of software maker Tibco

Vista Equity Partners (Vista) is considering a sale of Tibco Software Inc., according to people familiar with the matter.

The private equity firm has held early stage talks with potential suitors, said the people, who asked not to be identified because the matter is private. Discussions are preliminary and Vista may decide to hold onto Tibco instead of pursuing a deal at this time, the people said.

Vista took Tibco private in 2014 in a deal valued at about US$4.3 billion including debt. The company, based in Palo Alto, California, makes software that clients use to collect and analyze data in industries from banking to transportation. It currently has about US$2.9 billion of debt, according to data compiled by Bloomberg.

A representative for Vista declined to comment. Tibco didn’t respond to requests for comment.

The conversations come on the heels of Kohlberg Kravis Roberts (KKR) & Co.’s purchase of BMC Software Inc. from an investor group led by Bain Capital and Golden Gate Capital. That deal, announced in May, valued BMC at about US$8.3 billion including debt, a person familiar with the matter said at the time, well above the US$6.9 billion the firms paid to take the company private 5 years earlier.

About Vista Equity Partners: Vista Equity Partners – Founded by Robert F. Smith in 2000 – is a U.S.-based investment firm with offices in Austin, San Francisco, Chicago, and Oakland with more than US$30 billion in cumulative capital commitments, currently invests in software, data and technology-based organizations led by world-class management teams with long-term perspective.

Vista Equity Partners is a value-added investor, contributing professional expertise and multi-level support towards companies realizing their full potential. The firm’s investment approach is anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions, and proven management techniques that yield flexibility and opportunity in private equity investing.. For more information, please visit www.vistaequitypartners.com.

Source: Bloomberg News