Welsh Carson Said to Shop Triple Point for $750 Million
Buyout firm Welsh, Carson, Anderson & Stowe is seeking to sell Triple Point Technology Inc. 18 months after buying the software provider, according to people familiar with the matter.
Welsh Carson, which purchased Triple Point for $500 million in October 2011, has engaged Barclays Plc and Deutsche Bank AG to run an auction for the Westport, Connecticut-based company, said the people, who asked not to be identified because the process isn’t public. The firm is seeking $750 million to $1 billion, two of the people said.
Potential buyers may include Oracle Corp. (ORCL) and IBM Corp. (IBM) as well as private-equity firms, one person said. The sale process began a month ago, and final bids are due in mid- to late April, this person said.
Triple Point, with more than 400 customers in over 35 countries, provides software that companies use to manage commodities and risks tied to commodities. Welsh Carson acquired the company from ABRY Partners LLC, a Boston-based private- equity firm that kept a minority stake, according to a press release announcing that deal. JMI Equity, a buyout firm with offices in Baltimore and San Diego, invested in Triple Point at that time as well.
Jonathan Rather, chief financial officer for New York-based Welsh Carson, Mayura Hooper, a spokeswoman for Deutsche Bank, and Candice van der Laan, a spokeswoman for Oracle, didn’t return calls seeking comment. Triple Point Chief Executive Officer Peter Armstrong, Kerrie Cohen, a spokeswoman for Barclays, and Clint Roswell, a spokesman for IBM, declined to comment on the sale.
Welsh Carson is seeking a sale for at least 10 times the $75 million Triple Point is estimated to earn this year before interest, taxes, depreciation and amortization, one person said.