Public IT Companies Drawing Bigger Private Equity Deals
December 12, 2011
A group, which is being led by Thoma Bravo and includes Teachers' Private Capital, has struck a deal to take Blue Coat Systems (NASDAQ: BCSI) private for $25.81 per share of common stock for a total transaction value of $1.3 billion. The proposed purchase price represents a 48% premium. Debt financing for the deal is being provided by Jefferies Finance. Blue Coat provides Web security and WAN optimization solutions.
Since the beginning of 2005, PE investors have taken 63 public Information Technology companies private, according to the PitchBook Platform. Eleven such deals have been completed so far this year, just two below the seven-year high of thirteen in 2007. 2011's transactions, however, have typically been much larger than those seen during 2007 with the median size for this year's deals at $976 million, compared to $585 million for deals in 2007.