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Listed blank check group is planning deal with E2open: Reuters
Posted on Wednesday, 14 October 2020 11:58
US-based supply chain management software firm E2open is nearing a deal to go public through a merger with special purpose acquisition company CC Neuberger Principal Holdings, people familiar with the matter told Reuters.

According to the sources, the deal values the business of USD 2.50 billion, including debt.

Plans could be announced as soon as today, the insiders noted, asking not to be identified as the situation is still private; however, talks could still be ongoing and there is no guarantee they will lead to a deal.

CC Neuberger has lined up more than USD 500.00 million in additional funding for the E2open deal through a private investment in public equity with institutional investors, one of the people said.

The target’s revenue is around five times what it was in 2015, a source told Reuters, adding the group stands to benefit as companies automate their supply chains further in the coronavirus pandemic.

Mergers with blank check groups have become increasingly popular this year as an alternative way to make it to the public markets to avoid a traditional initial public offering (IPO) route.

Founded in 2000, E2open is a business-to-business provider of cloud-based, on-demand software for supply chains for computer, telecommunications and electronics systems and components.

The group was acquired by Insight Venture Partners, via Eagle Parent Holdings, for USD 273.00 million in 2015.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 3,402 deals targeting software publishers announced worldwide in 2020 to date.

In the largest of these, Microsoft agreed to acquire ZeniMax Media for USD 7.50 billion.

Veeam Software Holding, OSIsoft, Epicor Software, among others, have also been targeted in the year to date.

© Zephus Ltd