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Private equity firms circle Compuware

5 Mar 2013

software2_lrgPrivate equity firms Apax Partners and Hellman & Friedman are reportedly circling software group Compuware, which has recently turned down a $2.3bn takeover offer from hedge fund Elliott Management.

According to Bloomberg, Compuware is actively looking for alternative offers and has recently held management presentations to other potential suitors such as Thoma Bravo and Golden Gate Capital.

The report, which cited people familiar with the situation, said Apax and Hellman & Friedman are also interested and the first round of bids is due in two weeks. However, the sources also said that there is no certainty that a deal will be done.

When rejecting Elliott’s offer, Compuware said the offer of $11 per share significantly undervalued the business and was not in the best interest of shareholders.

Bob Paul, Compuware CEO, said, “We are confident our plan will accelerate our progress and provide significant, near-term returns as well as future upside to our shareholders.

“While we are focused on executing and delivering on our plan, the board will carefully review and evaluate any credible offer it receives, including from Elliott, that delivers full value to its shareholders.”

Compuware, which has risen more than 20 per cent since Elliott made its offer public, currently has an enterprise value of $2.48bn, the report said. Elliott had an 8.72 per cent stake in the company as at February 14.

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