Private equity firm Thoma Bravo has acquired Coupa in a deal worth $8 billion.
Thoma Bravo has over $120 billion (USD) in assets under management with a focus on investing in software and technology companies.
Reuters reported news of the deal on Monday sent Coupa’s shares up 27%, after a drop of more than 60% so far this year.
Coupa, a leader in Business Spend Management (BSM), will become a privately held company after completion of the all cash transaction.
FinTech Global reported the acquisition is expected to close in the first half of 2023, subject to conditions. Coupa is expected to maintain its existing name and brand.
In a statement Thoma Bravo managing partner Holden Spaht said the company had been following Coupa’s progress for many years. “Coupa has created and led the large and growing Business Spend Management category. We’ve followed the company’s success for many years and have been impressed by its consistent track record of delivering high levels of value for its global customer base. We look forward to partnering with Rob (CEO Rob Bernshteyn) and the rest of the management team to keep investing in the company’s product strategy while driving growth both organically and through M&A.”
Coupa CEO and chairman Rob Bernshteyn said: “For more than a decade, we’ve been building an incredible Business Spend Management Community and have proudly cemented our position as the market-leading platform in our category. We’re looking forward to partnering with Thoma Bravo and accelerating our vision to digitally transform the Office of the CFO.
In its third quarter results on 12 December Coupa reported growth figures of 20% and 17% year-over-year for quarterly subscription revenues ($198 Million) and quarterly revenues ($217 million).
In a status update on his LinkedIn account Spend Matters CEO Jason Busch believes Coupa’s near-term focus following the acquisition “will center on accelerated application rationalization.”
“If we had to venture a guess, however, we would suspect Coupa’s near-term focus from a business and technical perspective will center on accelerated application rationalization to more deeply assimilate acquired technology creating greater value for the CFO around spend capture, freeing up cash and reducing risk,” he said.
Maximizing the value of spend for the ultimate benefactor of the finance department is a clear, compelling vision, especially since it supports a broader “big spend management” mandate. But it is also one that will necessarily require emphasizing development toward some areas over others. Sourcing professionals will recognize this dual focus on considering higher impact and ease of implementation (and time to value).”
