Barclays upgraded Tibco Software Inc. (NASDAQ: TIBX) from Underperform to Equal-Weight and raised the price target from $19 to $24.
Analysts Raimo Lenschow and Saket Kalia upgraded the rating due to news that the software company will be acquired by Vista Equity Partners at $24 per share for $4.3 billion in cash.
The report noted that “Tibco has been under pressure from activists to explore strategic alternatives since Praesidium Investment Management Company issued a letter to Tibco’s board on June 11 imploring the company to unlock value.”
Lenschow also commented that he believes “it is unlikely that shareholders will try to hold out for a better offer, given the somewhat expensive valuation of this deal at 20x” based on Barclays FY15 EBITDA estimate of $210 Million.
Tibco Software Inc. traded recently at $23.64 on Tuesday.
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