Deltek Inc., a Virginia-based maker of enterprise software for professional services firms and government contractors, is going private.
This report from ComputerWorld U.S. outlines that equity firm Thoma Bravo LLC is taking it off the public market for US$13 a share, or US$1.1 billion, gives some context and finds two industry analysts to comment.
According to the company’s Web site Canadian customers include JMP Engineering of London, Ont., R.J. Burside Associates, a civil engineering firm and Stendel + Reich Architects.
Deltek shares have been steadily climbing for the past year, and recently hit $14.99. But that’s not the whole story. Last year was a rough one, with the company posting losses. This year it returned to the black.
According to Deltek’s most recent quarterly report, revenues have largely been steady this year compared to 2011. For the first six months of the year it pulled in just over US$168 million, compared to just over US$167 million for the same period a year ago. But for the first six months of this year Deltek posted net income before taxes of US$2.4 million, compared to losses totalling US$5.5 million for the same period in 2011.
Presumably Thoma Bravo hopes to help Deltek improve its balance sheet even further — or merging it with another firm — before putting it back on the market.
“In Deltek, we found a vertical market leader with unmatched solutions, a loyal and broad customer base, passionate employees and significant organic and acquisition-led growth opportunities,” Thoma Bravo managing partner Orlando Bravo said in a statement, “and the firm is confident in our approach and experienced in leveraging such assets to drive growth.”