Deals
Software Analysts ‘Got It Right’ as Ellie Mae Priced at Premium
- Wall Street had been divided on takeover odds ahead of deal
- Shares trade above Thoma Bravo bid as short-sellers jump ship
Photographer: Ron Antonelli/Bloomberg
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Ellie Mae Inc.’s $3.7 billion takeover offer from Thoma Bravo is a victory for software-focused analysts who had defended the stock in spite of criticism from many on Wall Street who didn’t believe the company would be bought for a premium price.
Thoma Bravo agreed on Tuesday to pay $99 a share, 47 percent more than the 30-day average closing price, for the provider of software to help streamline and automate the mortgage origination process for lenders. Wall Street has been increasingly mixed on Ellie Mae amid a debate over whether the company should be valued for its software or priced at a discount due to its exposure to the struggling mortgage market.