A $1.5 billion take-private deal with acquisitive private-equity firm Thoma Bravo is fueling an 18% rally in software company Everbridge Inc.’s stock on Monday.
For Thoma Bravo, Everbridge marks the first take-private transaction of 2024, after the Miami-based specialist in scooping up undervalued software companies completed five buyouts of public companies in 2023.
With its 18% gain on Monday, Everbridge’s stock
EVBG,
is notching its largest percentage price increase in more than a year, after the stock rose 18.6% on Nov. 10, 2022, according to Dow Jones Market Data.
Everbridge said it has agreed to be taken private for $28.60 a share in cash. That’s a 32% premium over Everbridge’s volume-weighted average share price over the past three months, Thoma Bravo said.
While the price is much higher than Everbridge’s stock price in recent months, Thoma Bravo is getting the company at a large discount to its all-time high of more than $160 a share in August 2021.
Prior to Monday’s deal, the stock has been trading between $18.50 a share and $35.55 a share in the past 12 months.
Hudson Smith, a partner at Thoma Bravo, and Matt LoSardo, principal at Thoma Bravo, led the Everbridge deal for the Miami-based private-equity firm led by Orlando Bravo.
Thoma Bravo closed five take-private deals in 2023: the roughly $8 billion deal for business spending-management company Coupa Software, as well as ForgeRock, Magnet, UserTesting and NextGen.
Founded in the years after 9/11 as a provider of customer-experience-management software, Everbridge specializes in “helping to keep people safe and organizations running amid critical situations,” Thoma Bravo said.
The Burlington, Mass., company empowers organizations to anticipate, mitigate, respond to and recover stronger from critical events, according to a statement on its website.
This story originally appeared on Marketwatch
