Tags: Tibco | Software | Strategic | Options

Tibco Software Hires Goldman Sachs to Review Strategic Options

Wednesday, 03 Sep 2014 05:07 PM

Tibco Software Inc., which is being urged to explore a sale by an activist investor, has hired Goldman Sachs Group Inc. as an adviser as the company reviews its strategic options.

Tibco makes software used by businesses to process and analyze data. The Palo Alto-based company’s shares have fallen 30 percent in the past two years. Praesidium Investment Management Co., Tibco’s sixth-largest shareholder sent a letter to the board on Aug. 12 seeking a sale of the company.

The company's announcement lifted Tibco's shares in aftermarket trading Wednesday. At about 5 p.m. in New York, the shares were up 8.8 percent at $22.90.

Tibco’s directors also hired law-firm Wilson Sonsini Goodrich & Rosati, in addition to Goldman Sachs, to assist in the evaluation. The board began a review on Aug. 16 of “a variety of strategic and financial alternatives available to the company,” Tibco said in a statement Wednesday.

Tibco’s revenue growth slowed to 4 percent in the latest fiscal year through November, from 22 percent in 2011.

“Following a detailed evaluation over the past several months, we have determined that it is prudent to undertake a wide review of strategic and financial options to see which alternative or alternatives, including our standalone plans, are in fact the best way to maximize shareholder value,” Vivek Ranadive, Tibco’s chairman and chief executive officer, said in the statement.

“We strongly believe that a rigorous, formal process is required in order for the board to make a fully informed decision in good faith regarding whether a sale, a stand-alone strategy or another alternative is in the best interests of the company’s shareholders,” Praesidium, which owns about 3.2 percent of Tibco, wrote in its letter last month.

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Tibco Software Inc., which is being urged to explore a sale by an activist investor, has hired Goldman Sachs Group Inc. as an adviser as the company reviews its strategic options.Tibco makes software used by businesses to process and analyze data. The Palo Alto-based...
Tibco, Software, Strategic, Options
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2014-07-03
Wednesday, 03 Sep 2014 05:07 PM
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