Coupa Software Inc. (NASDAQ: COUP) jumps around 29% in pre trading session after the private equity firm Vista Equity Partners is considering buying Coupa Software Inc., as per reported by Bloomberg.
Coupa did not immediately reply to a request for comment from Reuters, while Vista declined to comment. According to the article, Vista has spoken with Coupa, which is working with a consultant, and it was also said that private-credit lenders would be able to finance a prospective merger.
The development occurs at a time when takeover activity by private equity purchasers has increased as valuations of publicly traded tech businesses have declined as a result of a wider stock market selloff brought on by rising inflation and tightening monetary policy.
Coupa Software Inc. may be acquired by Vista Equity Partners, according to persons with knowledge of the situation. The announcement caused the stock to rise as much as 36%.
According to the people, who asked to remain anonymous because the conversation is private, Vista has spoken with the San Mateo, California-based business that has a consultant. The sources claimed that financing for a potential deal could come from private-credit lenders.
No agreement is near, and Vista may decide not to pursue a merger, the sources claimed. They noted that Coupa may also attract other suitors.
Requests for feedback from representatives of Vista and Coupa Software were not immediately fulfilled.
Vista is one of the most active private equity investors in the technology sector, led by billionaire Robert F. Smith. In October, the company agreed to pay $4.6 billion for the software security company KnowBe4 Inc., and in August, it agreed to pay $8.4 billion for Avalara Inc. It funded the transactions using private credit.
The so-called business-spend management software offered by Coupa Software assists businesses in monitoring and controlling their acquisition of goods and services. According to its website, clients have included Groupon Inc. and Nestle SA.