MERGERS & ACQUISITIONS

Deltek makes $1.1B deal with private equity buyer

Deltek Inc. will be acquired by $1.1 billion by the Thoma Bravo private equity group in an all cash deal.

The rumors of Deltek being for sale have circulated for at least a month as its primary shareholder, New Mountain Capital, was looking for a way to cash out its position.

Deltek shareholders will get $13 a share, a 7 percent discount on its price as of Aug. 24, but a 24 percent premium over the share price on June 11, the day before the company began shopping for a buyer.

New Mountain Capital acquired Deltek in 2005 for $200 million. At the time, Deltek had $123 million in revenue. The company later went public, but New Mountain remained its largest shareholder with a 59.5 percent stake.

Once this deal closes, Deltek will again be a private company. The transaction will be completed after customary regulatory reviews.

The company’s management team will remain in place under the new ownership.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

Reader Comments

Mon, Aug 27, 2012 Seer District of Columbia

Pity the buyer. Altho D is prominent in the market, the market is shrinking and people are willing to spend less, not more, for market research. I don't know about Deltek's accounting system, but it stands to reason there are far fewer buyers in prospect than before. The price sounds way too high--by hundreds of millions of dollars. Good thing the acquirer will become private, because shareholders would eat it alive.

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