Everbridge Anticipates Q3 Closure for Thoma Bravo Acquisition After Initially Predicting Q2 Finish

Everbridge anticipates its acquisition by Thoma Bravo to finalize in Q3, rather than Q2 as previously expected. The companies are still working on the final regulatory approval from Sweden, which is required for the transaction to proceed. The sale was initially announced in February and revised to $35 a share in March.

Everbridge, a leading global critical event management and national public warning solutions provider, has announced that it anticipates finalizing its acquisition by Thoma Bravo in the third quarter of the year, rather than the previously expected second quarter. The companies are still working on the final regulatory approval from Sweden, which is required for the transaction to proceed [1].

According to the amended merger agreement signed in March, Everbridge shareholders will receive $35.00 in cash per share, representing a 62% premium to the company's 90-day volume-weighted average share price prior to the announcement of the original transaction [1]. This deal values Everbridge at approximately $1.8 billion [1].

The increased price reflects the significant interest that Everbridge received during the "go-shop" period, which allowed the company to actively seek alternative acquisition proposals from certain third parties [1]. After evaluating these proposals, Everbridge and Thoma Bravo entered into the amended and restated merger agreement [1].

The original merger agreement, signed in February, included a "go-shop" period that permitted the Everbridge Board and its advisors to solicit alternative acquisition proposals from select third parties [1]. In March, a third party proposed acquiring all outstanding shares of Everbridge at a higher price than the original transaction price [1]. After reviewing and determining that this proposal was superior to the original, Everbridge and Thoma Bravo entered into the amended and restated merger agreement [1].

Despite the delay in regulatory approval, Everbridge remains confident in the long-term growth potential of its products and services. Chairman and Lead Independent Director of the Everbridge Board of Directors, David Henshall, expressed his satisfaction with the increased price, stating, "We're pleased to have negotiated an even higher price for our shareholders. The interest we received as part of the go-shop process is a testament to the exceptional company we've built and the significant value of our products for organizations all over the world."

References:

[1] Everbridge Enters into Amended Merger Agreement with Thoma Bravo. BusinessWire. March 1, 2024. https://www.businesswire.com/news/home/20240301005312/en/