Everbridge Inc., a software company, witnessed a remarkable 18% surge in its stock on Monday following a $1.5 billion take-private deal with private-equity firm Thoma Bravo.
Thoma Bravo’s acquisition of Everbridge represents its first take-private transaction in 2024. The Miami-based firm, known for acquiring undervalued software companies, successfully completed five buyouts of public companies in 2023.
As of Monday, Everbridge’s stock (EVBG, +18.45%) experienced its largest percentage price increase in over a year. The stock previously rose by 18.6% on November 10, 2022, according to Dow Jones Market Data.
Under the terms of the agreement, Everbridge has agreed to be taken private for $28.60 per share in cash. This demonstrates a significant 32% premium over the company’s volume-weighted average share price during the past three months, as confirmed by Thoma Bravo.
Despite the current price being higher than the recent stock price of Everbridge, it represents a substantial discount compared to its all-time high of over $160 per share in August 2021.
Over the past 12 months, before this deal was announced, Everbridge’s stock fluctuated between $18.50 and $35.55 per share.
Leading the Everbridge deal for Thoma Bravo were Hudson Smith and Matt LoSardo, who hold key positions within the Miami-based private-equity firm led by Orlando Bravo.
Thoma Bravo’s successful takeover of Everbridge follows its closure of five take-private deals in 2023, including the approximately $8 billion deal for Coupa Software, along with ForgeRock, Magnet, UserTesting, and NextGen.
Everbridge was founded in the years following the tragic events of 9/11, with a focus on providing customer-experience-management software. The company specializes in enabling organizations to prepare, mitigate, respond to, and recover from critical situations, emphasizing the importance of keeping people safe and organizations operational during such events, as stated on its website.
Also read: ‘The opportunity now is at these much lower valuations’: Orlando Bravo’s investing strategy after Nasdaq plunge.