David Scott 08-31-2012
Deltek, a leading global provider of enterprise software and information solutions, caused quite a stir at the beginning of the week, announcing its acquisition by a private equity firm, Thoma Bravo. Deltek had previously put itself up for sale
(see article) in mid-July, and Thoma Bravo took the bait, purchasing the company for approximately $1.1 billion, or $13 per share. Deltek’s board of directors unanimously approved the decision, making what appears to be, a smooth transaction. One other important detail to note is that, due to the purchase, Deltek will no longer be a publicly traded company. As a Deltek partner and reseller, KM Systems Group has not experienced an initial effect of the acquisition, but is certainly asking ourselves: what future impact will this have on our organization?
In general, our overall opinion of the acquisition is positive. KMSG believes that the acquisition is in the best interest of both the customers and partners. Since Thoma Bravo is a private equity firm, this should keep the focus on developing best of breed Integrated Program Management (IPM) solutions. The alternative scenario would be an acquisition by a conglomerate company, such as Oracle or SAP. We believe this would result in a loss of focus due to the integration of the company, management, and the product suite. We are confident that Thoma Bravo will do its best to maintain the Deltek products and services, keeping them in line with their already-established image.
Anyone have a different outlook on the situation? Do you think Deltek was wrong to put itself up for sale and award the acquisition to Thoma Bravo? Or perhaps this is small news in the scheme of things, with little or no effect foreseen?