Private equity firm Thoma Bravo to buy software developer Compuware for $2.5 billion

Private equity firm Thoma Bravo will spend about $2.5 billion to buy Compuware and take the software developer private.

The companies said Tuesday that Compuware stock owners will receive about $10.92 for each share they own. That price includes mostly cash and some stock from Compuware spinoff Covisint.

It represents a premium of about 17 per cent to the Detroit company’s Friday closing price. Compuware Chairman Gurminder S. Bedi said in a statement that the deal will give shareholders an immediate cash value and provide an opportunity to complete the spinoff of Covisint, which went public in September 2013.

Compuware said its board unanimously approved the deal and recommends shareholders vote for it as well. The company’s largest shareholder, activist investor Elliott Management, has already agreed to vote in favour of the deal.

Elliott holds a 9.6 per cent stake in Compuware Corp. and tried to acquire the remaining stake in the company with a $2.35 billion bid that Compuware rejected last year.

Thoma Bravo and Compuware expect their deal to close early next year.

Shares of Compuware gained more than 12 per cent, or $1.17, to $10.52 in Tuesday morning trading, while broader indexes rose slightly. Covisint shares fell 8.5 per cent, or 41 cents, to $4.40.