Robotic Process Automation (RPA) Market It became bright red One of the market pioneers last year Blue prism, Sold to Vista Equity Partners According to £ 1,095 million (US $ 1.5 billion) Filing In England this morning. Last year, many RPA startups were acquired by large vendors, the first transaction involving one of the top three vendors in the field.
This is a complex transaction, and Vista has set up an entity called Bali Bidco Limited. It is indirectly owned by Vista Funds and will be purchased on behalf of Vista, according to Filing. It’s unclear why they used that financial mechanism, but in the end a private equity group bought Blue Prism and folded it into another Vista property. Tibco, Which Company acquired in 2014 For $ 4.3 billion.
Blue Prism is facing a difficult time with its own approval for filing and has been exploring its options since its annual meeting in March last year. “The Blue Prism Board considered a variety of strategic options in light of the strategic and operational headwinds the company faces, significant risks in implementation, and shareholder feedback,” the company said in a filing. Stated.
One of those options is sales, which we have decided to be the best approach for the company. Jason Kingdon, Chairman and CEO of Blue Prism, sees this as the best way to lay a solid foundation.
“Combined with Vista and Tibco, we can stay at the forefront of next-generation intelligent automation. Tibco’s global footprint and technology expands the range of products we offer our customers. As a company, we will also have greater access to capital to pursue new growth opportunities through product investments and other potential M & As, “Kingdon said in a statement.
We delved into Blue Prism’s past performance to better understand the sale decision. In the six months to April 30, 2021, the company reported revenue worth £ 80.4 million (approximately US $ 108 million). This is a 24% increase on a constant currency basis compared to the same period last year. Over the same period, Blue Prism reduced its operating loss from £ 53.8 million to £ 20.9 million.
The company wasn’t growing particularly rapidly at unprofitable levels, despite advanced red ink stemming. The value of Blue Prism has fallen before the deal was announced, indicating that public investors were not keen on its performance. Vista pays the company a premium through Bidco, but less than its value earlier this year before Blue Prism’s recent decline.
Looking at the company’s revenue in the first half of 2021, extrapolating it for over a year, Blue Prism is selling about 6.8 times more revenue. This is a useful number as it shows the exit value of public software revenue in the European market from companies that are growing as slowly as Blue Prism. Vista seems confident that buying and combining Tibco will be beneficial.
Founded in 1997, Tibco, a legacy vendor, offers a wide range of automation services for connecting data sources across the enterprise, while Blue Prism automates a set of routine legacy tasks for the entire organization. We provide robotic process automation services to help you. The two should harmonize well, at least on paper, as Blue Prism provides a foothold in Tibco’s growing RPA market.
Last year, Gartner reported that UIPath was included in the top three vendors in this area. Company released last year For big fanfare, Automation Anywhere, Blue Prism. In last year’s report, IDC predicted that the RPA market would reach $ 2 billion this year. That’s a modest amount given the hype around it, but IDC predicts it will reach $ 5.9 billion by 2024.
There is a lot of integration in the industry, with SMEs being acquired by large companies last year. Very recently Salesforce Acquires German Startup Combined Servicetrace with Mulesoft. This is similar to Vista buying Blue Prism and folding it into Tibco. Mulesoft and Tibco can be considered competitors.
This transaction is subject to Blue Prism shareholder approval and standard regulatory processes. Blue Prism shares are 2.12% off in the news.
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