The transaction between Vista Equity Partners and Xactly is expected to be closed in the third quarter of the 2017 post approvals
Xactly, a cloud-based incentive solutions provider, has entered into a definitive agreement to be acquired by Vista Equity Partners (“Vista”), a leading private equity firm focused on investments in software, data, and technology-enabled businesses.
Subject to customary closing conditions, the transaction is expected to be closed in the third quarter of 2017. The conditions include approvals from Xactly’s stockholders and clearance from antitrust regulators in the US.
Acquiring outstanding shares of Xactly worth $564 Million
Affiliates of Vista will acquire all outstanding shares of Xactly common stock for a total value of about $564 million. Following the news, Xactly shares jumped 16% in pre-market trade on May 30, 2017. Xactly listed on the bourses in June 2015.
$15.65 per share
Xactly stockholders will receive $15.65 in cash per share, representing an approximately 17% premium to the closing price as of May 26, 2017, and an approximately 31% premium compared to the 3-month volume weighted average price of Xactly’s common stock.
Vista’s Co-founder calls Xactly an ideal addition to its family
“Xactly’s market leadership in cloud incentive compensation solutions makes it an ideal addition to the Vista family of companies,” said Brian Sheth, Co-Founder and President of Vista Equity Partners. “We are looking forward to bringing Vista’s resources and expertise to help drive Xactly’s next phase of innovation and growth.”
Vista will help to create a new era of incentive compensation management
“This announcement represents a very positive event for our stockholders and enables Xactly to build upon its successful 12-year history,” said Christopher W. Cabrera, founder, and CEO of Xactly Corporation. “We are confident that Vista is the ideal partner to accelerate our growth initiatives and enable Xactly to focus on innovation and customer success while forging a new era of incentive compensation management.”
The company headquarters will remain in San Jose. J.P. Morgan Securities LLC is acting as an exclusive financial advisor and Wilson, Sonsini, Goodrich & Rosati, Professional Corporation, is serving as legal advisor to Xactly. Vista’s legal advisor is Kirkland & Ellis LLP.
Xactly was recently named as a Leader in 2017 Gartner Magic Quadrant for Sales performance management. The sales performance and incentive compensation solutions provider announced preliminary financial results for the first quarter of 2018. The company will report its fiscal 2018 first quarter in its Quarterly Report on Form 10-Q. It will not hold a conference call to discuss earnings due to the announced sale of the company.