Vista Equity to buy Solera for $3.74 billion

Solera Holdings Inc, which provides claims processing software to insurance companies, said it agreed to be acquired by an affiliate of private-equity firm Vista Equity Partners for $3.74 billion in cash.

Vista expects the transaction to enhance its position as an acquirer of data companies and enterprise application software. The deal is the largest in Vista’s history.

The offer price of $55.85 per share represents a 13 per cent premium to Solera’s share price on Friday, when the stock closed up 3.9 per cent.

The deal value is based on Solera’s outstanding shares as of 25 August, including debt, the deal is valued at about $6.5 billion, Solera said.

The deal, which is not subject to any financing condition and will be financed through a combination of common and preferred equity contributions by investment funds affiliated with Vista, Koch Equity Development, and an affiliate of Goldman Sachs & Co, Solera said in a statement.

Existing debt financing as well as new debt financing for the deal, which has been approved by Solera’s board, has been committed to by Goldman Sachs Bank USA and Goldman Sachs Lending Partners LLC.

The deal is expected to close no later than the first calendar quarter of 2016.

Solera’s clients include the 10 largest insurance companies in Europe and the United States.