digest 05

Quote of the Week: Hitting the Take Private Wall

by

May 7, 2015

“The activists have gotten accustomed to [knowing that], if they start a process, PE will be there to buy it. That may be true in April 2015. I’m not sure if that’s true forever.”

Who said it: Ryan Hinkle, Managing Director, Insight Venture Partners

In Context: Industry insiders commented to The Deal on news this week that Salesforce.com is under activist investor pressure, saying that private equity will not be likely partake in an auction. Few companies could swallow the SaaS company’s huge valuation, USD 60 billion. Software deals, typically the territory of VCs, are more frequent in private equity today, not only in take privates, but also in the mid-market. Thoma Bravo, Vista Equity Partners and Bain Capital Partners are known for software deals. The article mainly focuses on the relative merits of SAAS and software companies for investors that understand the business models.

Where we found it: The Street

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