Elliott Management Corp. said it has entered into a support agreement to vote its shares in favor of the acquisition of Compuware Corp. (NASDAQ: CPWR) by Thoma Bravo.
Elliott owns 9.5 percent of Compuware and is its largest shareholder.
Jesse Cohn, portfolio manager at Elliott Management Corp., said, “This has been a significant endeavor — selling assets, cutting costs, implementing the Covisint IPO, adding experienced executives to the boardroom and taking numerous other steps to streamline and improve the company.”
The Compuware board of directors unanimously approved the agreement and recommends that Compuware´s shareholders approve the transaction. The transaction, which is expected to close by early 2015, is subject to approval from Compuware´s shareholders, regulatory approvals, and other customary closing conditions. The closing of the transaction is also subject to the completion of a disposition of Covisint.
Gurminder S. Bedi, Independent chairman of the Compuware Board, said, “This is the right transaction for Compuware at the right time, and reflects a thorough board review of strategic alternatives and the work of a committee established earlier this year to focus on value-generating steps. This agreement provides shareholders with immediate and substantial cash value, a significant premium to our share price, and the ability to complete the Covisint spin-off to shareholders.
Elliott Management Corp. manages two multi-strategy hedge funds which combined have more than USD24bn of assets under management. Its flagship fund, Elliott Associates, L.P., was founded in 1977, making it one of the oldest hedge funds under continuous management. The Elliott funds´ investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.
Compuware Corp. is a technology performance company. Learn more at www.compuware.com.
Thoma Bravo is a leading private equity investment firm with a 30-year history of providing equity and strategic support to experienced management teams and growing companies. The firm currently manages a series of private equity funds representing more than USD7.5bn of equity commitments. For more information, visit www.thomabravo.com.