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Francisco Partners and Vista Equity Partners have made a preliminary all-cash approach to acquire Progress Software (PRGS) at $48 per share, according to people familiar with the matter, in what would rank among the latest high-profile take-private deals in the enterprise software sector.
The approach, which remains informal and has not resulted in a signed agreement, carries a meaningful premium to where Progress Software shares have recently traded. People briefed on the situation warned that talks are at an early stage and may not culminate in a transaction.
Progress Software’s board has begun evaluating the unsolicited proposal with the help of outside financial and legal advisors, the sources said.
Both Francisco Partners and Vista Equity Partners have built reputations as prolific acquirers of software and technology businesses, deploying leveraged buyout strategies across the sector over many years. A completed deal would extend a broader wave of sponsor-led take-privates, as private equity firms look to take advantage of what they see as depressed valuations in public technology markets.
Progress Software, whose products span infrastructure software and enterprise application development tools, has drawn attention from analysts as a natural buyout target. The company’s predictable recurring revenues and robust cash generation are seen as characteristics that lend themselves well to a leveraged capital structure.
The $48-per-share figure attributed to the proposal reflects both the company’s consistent operating track record and the perceived strategic worth of its software portfolio, according to market participants.
The two firms and Progress Software declined to comment. Discussions are ongoing, and further clarity on the deal’s status is expected in the coming days.
