An offer Apptio couldn’t refuse
Apptio Inc. (Nasdaq: APTI) is up over 50% at the open of today’s trading session after announcing that it has agreed to be acquired by Vista Equity Partners for $1.94 billion, or approximately $38 per share. The $38 price tag represents a 52.9% premium to Apptio’s closing price of $24.85 on Friday, which is all investors could really ask for unless they bought in near its 52-week high of $41.36 back in September. The deal is expected to close in the first quarter of 2019 and is not subject to a financing condition.
The “go-shop” period
It’s important to note that the merger agreement includes at 30-day “go-shop” period. Over the next 30 days, Apptio will be permitted to “actively initiate, solicit, encourage, and potentially enter negotiations” with other companies, so the deal with Vista is not set in stone just yet, but I personally do not foresee a bidding war and think the deal will close as is.
A big win for Disruptors & Innovators
Disruptors & Innovators, our newsletter that focuses on finding stocks with the potential to rise 10x over the next ten years, recommended Apptio just two weeks ago on October 31 at $25.60 per share. So this deal was a huge win for subscribers. While we don’t expect to generate these types of returns in such a short period, we will take our victory laps when deals like this fall into our laps.
Congratulations to all shareholders of Apptio, and if you’re looking for some more investment ideas in the software space, click on over to Disruptors & Innovators and check out our other active recommendations.