Solera Holdings, a provider of software to the automobile claims-processing industry, has agreed to be acquired by an affiliate of Vista Equity Partners for roughly $6.5 billion, including net debt.
Vista will pay $55.85 in cash for each of Solara’s outstanding shares, representing a premium of 53% over the company’s closing share price of $36.39 on Aug. 3. The stock was trading Monday at $53.74, up 8.7%.
“This transaction delivers immediate compelling value to our stockholders and represents a pivotal milestone for Solera,” Solera’s founder, chairman and chief executive Tony Aquila said in a news release.
Solera, based in Westlake, Texas, said last month it had set up a special committee to explore strategic alternatives. Its brands include Audatex, CarweB, and AUTOonline, serving car insurance companies, collision-repair facilities and independent assessors.
“With the portfolio of products the company has built and acquired, combined with the vision of its leadership, we believe Solera is incredibly well positioned for the next 50 years,” Robert F. Smith, Vista’s founder, chairman and CEO, said.
Other key investors in the deal include an affiliate of Koch Equity Development and an affiliate of Goldman Sachs.
Solera was founded in 2005 and processes more than 230 million insurance transactions each year, according to Bloomberg. The company last month reported fiscal year revenue for 2015 of $1.1 billion, up from $987.3 million the previous year. It posted adjusted earnings before interest, taxes, depreciation and amortization of $458 million, compared to $415.4 million in 2014.
For Vista, this would be the private equity firm’s biggest acquisition ever, topping the $4.2 billion purchase of Tibco Software last year, Bloomberg said. The deal is expected to close by the end of the first quarter of 2016.