Supply Chain B2B business network platform provider E2open, Inc. announced today a definitive agreement to be acquired by private equity firm Insight Venture Partners. According to the announcement, the transaction is valued at $273 million, approximately three times current E2open revenues in its current fiscal year. E2open is a current Sustaining sponsor of this blog.
Under the terms of the agreement, an affiliate of Insight Venture Partners will commence a tender offer for all outstanding shares of E2open common stock for $8.60 per share in cash, representing a 41 percent premium over the technology provider’s closing stock price at the close of business yesterday. The Board of Directors of E2open has unanimously approved the merger agreement. E2open’s stock closed this afternoon up nearly 40 percent.
In mid-January, the Wall Street Journal had reported that E2open was seeking a buyer and was working with an outside advisor as part of a potential sale process. That was quickly followed by E2open’s Board adopting a one-year stockholders rights plan.
Today’s announcement follows these prior set of events as well as the technology provider’s fiscal Q3-2015 results. This author listened-in on that earnings briefing and had the impression that the blip in results was a result of internal sales execution. E2open currently has a stellar listing of installed base customers.
Obviously there is more to this announcement, both short and long-term, and we will be seeking additional information for our readers.
Disclosure: E2open is one of other current sponsors of the Supply Chain Matters blog.