Vista Equity Partners has agreed to pay $1.05 billion in cash for Active Network, which is used by millions of people to register in races, reserve camp sites and enroll in sports leagues.
Under the terms of the agreement Vista will commence a tender offer to acquire all of the outstanding shares of Active’s common stock for $14.50 per share in cash, representing a premium of approximately 111 percent to Active’s year to date average closing stock price. The Active Board of Directors unanimously recommends that Active stockholders tender their shares in the tender offer.
“This announcement represents a very positive event for our stockholders and allows Active to build on its success to date,” said Jon Belmonte, Interim CEO of Active Network. “We believe the partnership with Vista will position us to execute on our strategy and further enhance our industry leadership. For our customers, we will continue to focus on delivering the strongest product offerings through our advanced technology platform,” concluded Mr. Belmonte.
“Active Network’s leadership position in cloud-based Activity and Participant Management (APM) solutions make it a highly attractive investment for us,” said Robert F. Smith, CEO and founder of Vista Equity Partners, a U.S. based private equity firm that has more than $7 billion in capital invested in technology-based companies. “We are looking forward to working with the Active team and continuing to drive the next phase of Active’s growth.”
Active expects the transaction to close before the end of the fourth quarter of 2013. Upon the completion of the transaction, Active will become a privately held company.
Citi is serving as financial advisor to Active. BofA Merrill Lynch is serving as financial advisor to Vista. DLA Piper LLP (US) is acting as Active’s legal advisor. Kirkland & Ellis LLP is acting as Vista’s legal advisor. BofA Merrill Lynch, RBC Capital Markets, and BMO Capital Markets Corp. have agreed to provide debt financing in connection with the transaction.
Active Network plans to release its third quarter earnings after market close on Wednesday, Oct. 30 and does not intend to hold a conference call to discuss earnings given the announced sale of the company.
Active Network’s technology platform is used to manage all types of activities, events and organizations. The company serves more than 55,000 customers globally. Founded in 1999, the company is is headquartered in San Diego
Vista Equity Partners has offices in San Francisco, Chicago and Austin and invests in companies run by “world-class management teams with long-term perspective.” Vista is a value-added investor, contributing professional expertise and multi-level support towards companies realizing their full potential.