* Says to be bought for $10.55/shr
* Offer price a 9 pct premium
* Shares up as much as 8 pct
(Recasts, adds analyst comments, updates shr movement)
By Sayantani Ghosh
BANGALORE, May 17 Business software maker
Double-Take Software Inc DBTK.O said it agreed to be acquired
by private equity firm Thoma Bravo LLC for about $242 million
The offer price of $10.55 a share reflects a premium of 9
percent to the stock's closing price of $9.66 on Friday.
Shares of company, which provides data-replication and
storage software, rose almost 8 percent on the news.
The offer is a fair enough price for a PE firm, said Kevin
Shea, analyst at MKM Partners. He doesn't see any strategic
buyer coming forward with a higher price.
The company's cloud replication product hasn't built up a
pipeline yet and the technology isn't breaking new grounds into
a high-growth market, he added.
The acquisition will be done through a portfolio company of
Thoma Bravo, Vision Solutions Inc, which helps firms recover
The deal is somewhat of a strategic fit for Vision and
Thoma Bravo because they know Double-Take well and have had
experience with such software, and so it is not a pure play on
a PE buyout, Shea said.
In April the company had said it received unsolicited
buyout offers, but had not disclosed any detail. Its shares
have risen 11 percent since then.
The deal would not alter the competitive dynamics of the
marketplace, but may be indicative of PE buyout activity,
analyst Shea said.
"It is indicative of what we are going to see throughout
2010 where you have underperforming companies getting a hard
look at by PE firms."
Double-Take expects the transaction to close in the third
quarter of 2010, it said in a statement.
Shares of the Southborough, Massachusetts-based company
were trading up 6 percent at $10.27 in late morning trade
Monday on Nasdaq. They touched a high of $10.40 earlier in the
(Reporting by Sayantani Ghosh; Editing by Saumyadeb
Chakrabarty, Unnikrishnan Nair)