Thoma Bravo, the Chicago-based private equity firm, has agreed to buy Deltek, an enterprise software company, for $1.1 billion in cash.
The deal, valued at $13 a share, is slightly below Friday's closing price of $14.01, but more than 22 percent above Deltek's price in mid-June, when the company first began to shop the business to potential buyers.
“We have a long history of investing in highly respected and industry-leading software companies,†Orlando Bravo, managing partner at Thoma Bravo, said in a statement. “In Deltek, we found a vertical market leader with unmatched solutions, a loyal and broad customer base, passionate employees and significant organic and acquisition-led growth opportunities.â€
Deltek specializes in project management software to government contractors and corporations, such as accounting and consulting firms. The company, which will keep its headquarters in Herndon, Va., after the close of the transaction, has roughly 1600 employees and generates annual sales of $341 million.
“Deltek's powerful brand presence in the government contractor, professional services, and project-oriented markets makes it well poised for continued global industry leadership,†Holden Spaht, a partner at Thoma Bravo said.
Deltek hired Greenhill & Company and Credit Suisse to serve as financial advisers and Fried, Frank, Harris, Shriver & Jacobson to be its legal advisor. Thoma Bravo was assisted by Jeffries & Company and Kirkland & Ellis, the Chicago-based corporate law firm.
The deal, which is expected to close in the fourth quarter, has the approval of the board and Deltek's majority shareholder, New Mountain Capital.
