GrowthPoint Technology Partners provides weekly summary and outlook on last week’s technology M&A deal activity:
- 108 deals announced
- Median multiple of 5.0x
- $6.1B total deal value year to date in technology M&A activity
Notable deals in technology M&A include:
Vista Equity Partners to Acquire Duck Creek Technologies – Read More
Duck Creek Technologies (NASDAQ: DCT), the intelligent solutions provider defining the future of property and casualty (P&C) insurance, today announces it has entered into a definitive agreement to be acquired by Vista Equity Partners (“Vista”), a leading global investment firm focused exclusively on enterprise software, data and technology-enabled businesses, for $19.00 per share, in an all-cash transaction valued at approximately $2.6 billion.
Under the terms of the agreement, Duck Creek shareholders will receive $19.00 per share in cash, which represents a 46% premium to Duck Creek’s closing stock price on January 6, 2023, the last full trading day prior to the transaction announcement, and a premium of approximately 64% over the volume weighted average price of Duck Creek’s stock for the 30 days ending January 6, 2023.
“This transaction is a testament to the value of the Duck Creek platform, the success of our strategy and the strength of our incredible team. Following a deliberate and thoughtful process, the Board approved this transaction which delivers a great outcome for Duck Creek’s shareholders, providing them a certain and substantial cash value at an attractive premium,” said Michael Jackowski, Chief Executive Officer of Duck Creek. “Duck Creek is proud to have pioneered cloud-based mission-critical systems for the P&C insurance industry to deliver a best-in-class customer experience. We are excited to enter the next chapter for Duck Creek in partnership with Vista Equity Partners to continue supporting P&C insurance carriers’ move to the cloud.”
Nuvei to Acquire Paya – Read More
GTCR, a leading private equity firm, announced today that portfolio company Paya Holdings Inc. (NASDAQ: PAYA), a leading integrated payments provider, has signed a definitive agreement with Nuvei Corporation (TSX: NVEI) (NASDAQ: NVEI) to be acquired in an all-cash transaction through a tender offer with a total enterprise value of approximately $1.3 billion. Following Paya’s listing as a publicly-traded company, GTCR remained Paya’s largest shareholder and the firm supports this transaction.
Headquartered in Atlanta, Georgia, Paya is a leading pure-play integrated payments platform serving customers in attractive and growing end markets such as B2B, government, utilities, non-profit and healthcare end markets. In total, Paya processes over $45 billion of annual payment volume, making it a top 10 provider of card-not-present payment processing in the U.S., and serves over 100,000 end-customers through over 2,000 software vendors and other key distribution partners.
GTCR originally acquired Paya in 2017 and, alongside Paya’s management team, helped transform the business through accelerated organic growth and several accretive acquisitions. In October 2020, Paya became a NASDAQ-listed public company.
Microsoft to Acquire Fungible – Read More
In December, reports suggested that Microsoft had acquired Fungible, a startup fabricating a type of data center hardware known as a data processing unit (DPU), for around $190 million. Today, Microsoft confirmed the acquisition but not the purchase price, saying that it plans to use Fungible’s tech and team to deliver “multiple DPU solutions, network innovation and hardware systems advancements.”
“Fungible’s technologies help enable high-performance, scalable, disaggregated, scaled-out data center infrastructure with reliability and security,” Girish Bablani, the CVP of Microsoft’s Azure Core division, wrote in a blog post. “Today’s announcement further signals Microsoft’s commitment to long-term differentiated investments in our data center infrastructure, which enhances our broad range of technologies and offerings including offloading, improving latency, increasing data center server density, optimizing energy efficiency and reducing costs.”
A DPU is a dedicated piece of hardware designed to handle certain data processing tasks, including security and network routing for data traffic. The approach is intended to help reduce the load on CPUs and GPUs for core computing tasks related to a given workload.
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