Vista Fairness is contemplating promoting Tibco, sources say


Founder, Chairman and CEO of Vista Equity Partners Robert F. Smith.

Photo credit: Getty; Photo Illustration: Elham Ataeiazar for CNBC Make It

Private equity firm Vista Equity Partners is considering a sale of Tibco Software, the cloud computing data analytics company, according to people familiar with the matter.

Vista hasn’t hired a financial advisor yet, but plans to meet with several investment banks in the coming days, said two of the people who asked not to be named as the process is private. No deal is secured and discussions with potential buyers have not yet started.

Vista was acquired by Tibco in 2014 for $ 4.3 billion. Since then, Tibco has bought several companies to expand its platform and product offerings, including data automation company Scribe Software in 2018 and analytics companies SnappyData in 2019 and Information Builders in 2020. Vista paid approximately $ 1 billion for Information Builders, Reuters reported.

It is unclear how much Tibco will command in a sale. One person suggested a price of about $ 7.5 billion and another said that number was “low”. A Vista spokesman declined to comment.

Vista’s acquisition of Tibco seven years ago helped spark a trend in which private equity firms are acquiring billions of dollars worth of enterprise software companies, a strategy that was relatively untested at the time. Since then, the value of potential targets has increased year on year. Vista competitor Thoma Bravo announced in April the acquisition of ProofPoint for $ 12.3 billion, the largest private equity cloud software deal ever.

Vista was also considering selling Tibco in 2018, Bloomberg reported at the time.

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