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Update: Private Equity Firm to Buy Compuware for $2.5 Billion

September 02, 2014, 7:55 AM

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Update: Thoma Bravo, a private equity firm based in San Francisco, will buy Compuware for about $2.5 billion, both companies announced in press releases Tuesday. 

"Compuware is the clear established leader in the categories of application performance and mainframe productivity tools, and this transaction is the capstone to a series of transformative company initiatives to relentlessly drive value," said Bob Paul, Chief Executive Officer of Compuware in a statement. "We began with the IPO of Covisint, initiated a robust dividend, divested non-core operations, and aggressively reduced corporate expenses. Compuware is now best suited to focus on its core mainframe and APM businesses as a private-equity backed company, where we can continue to serve our customers in a competitive environment with greater flexibility to take a long-term approach."

Paul told the Detroit Free Press that the company would remain in Detroit.

“Because we didn’t sell it to a strategic competitor, we are firmly entrenched in Detroit,” Paul told the Freep. "The business will continue to operate as is, but just in a private setting now. The leadership team remains intact." 


Original article, Tuesday 8 a.m.

A announcement could come as early as Tuesday on the sale of Compuware Corp., which had moved its headquarters from Farmington Hills to Detroit more than ten years ago.

Dana Mattioli of the Wall Street Journal reports that Compuware Corp. is in advanced talks with a private equity firm to sell itself. The paper cites "people familiar with the matter."

Last month, Tom Henderson of Crain's Detroit Business reported that analyst speculation, fueled by comments from Compuware's President and CEO Bob Paul, fueled talks that whoever buys the company might take it private.

Compuware's stock has been selling at a lackluster price. The latest report had it pegged at $9.35 s share

It's unclear what a sale would mean as far as Compuware staying in Detroit, or for that matter, keeping the building which was a centerpiece for a resurgence in the Cadillac Square area of downtown Detroit. 

Compuware's stock has been selling at a lackluster price. The latest report had it pegged at $9.35 s share.

Compuware was the original investor in Deadline Detroit. 
 


Read more:  Compuware


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