Sep 14, 2015 08:10 AM EDT

Vista Equity Lands Largest Deal In Its History: To Acquire Solera For $6.5B

By Alex Cruz


Vista Equity will be acquiring Solera Holdings Inc. for $6.5 billion, including debt, Reuters reported. According to a person familiar with the matter, this deal is the firm's largest in its history, topping the $4.2 billion acquisition of Tibco Software Inc. last year.

Vista expects that this acquisition will boost the company's position as an acquirer of data companies. The deal, which is at $3.74 billion excluding debt, is projected to be closed in the first quarter of 2016.

A source, who asked not to be identified because this matter is not public, said that Vista will pay $55.85 per share in cash for the Texas-based company. The price will carry a 13 percent premium to Solera's closing stock, Friday, according to a report from Bloomberg.

The investors who will reportedly join Vista are Broad Street Principal Investments, a Goldman Sachs Group affiliate, and an investment subsidiary of Koch Industries. JP Morgan is advising the company on the deal.

Solera said its board approved the existing and new financing debt for the deal, and has been committed to by Goldman Sachs Bank USA and Goldman Sachs Lending Partners LLC, as per the report of The Economic Times.

Solera, whose clients include ten of the largest insurance companies in Europe and in the United States, stated in Aug. 20 that they were exploring a "variety of strategic alternatives." The special committee of the board of directors hired Centerview Partners, LLC and Rothschild as financial advisers, while the law firm Sullivan & Cromwell was hired as its legal advisers.

Vista Equity and Solera Holdings reportedly agreed to the terms.

Vista Equity was founded by Robert F. Smith and Brian Sheth in 2000, while Solera Holdings, which is currently making an expansion on its core competencies of data, software and connectivity to the home, from auto, was founded in 2005 by Tony Aquila.

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