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UserTesting Inc. (NYSE:USER), which agreed Thursday to be bought to non-public fairness corporations Thoma Bravo and Sunstone Companions, has low odds of one other bidder rising, based on Opppenheimer.
UserTester (USER) is unlikely to see one other provide as its enterprise mannequin is in “transition,” the provide seems to be a “honest” valuation and the power of the PE corporations’ stability sheets will likely be tough for a rival bidder to beat, Oppenheimer analyst Brian Schwartz wrote in a word. Schwartz moved his ranking to not rated from outperform.
Thoma Bravo and SunStone agreed to buy UserTesting for $1.3 billion, or $7.50/share in money, a 94% premium to USER’s closing value on Wednesday. The settlement features a “go-shop” interval that expires Dec. 10 that permits USER to think about various acquisition proposals.
UserTesting (USER) shares skyrocketed 93% on the information.
The deal is more likely to see few regulatory points because the section is early in its evolution and the aggressive panorama is fragment, based on Schwartz.
Although the percentages of a rival bid are low, Qualtrics (XM) could be the logical firm to make an alternate bid, Schwartz wrote. Qualtrics is an integration-partner with UserTesting (USER), although it additionally has a competing product. Qualtrics rose 3.9%.
Massive CRM corporations resembling Adobe (ADBE), Salesforce (CRM), Oracle (ORCL) and Microsoft (MSFT) can also be seen as attainable white knights, based on Schwartz.
UserTesting (USER) earlier Thursday additionally reported Q3 outcomes.
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