On Tuesday, cloud computing firm Saba Software announced it has been purchased by Vector Capital, a private equity firm, which will purchase all outstanding shares for $9 apiece. The New York Times reports that the deal totals about $300 million.
The deal comes as no surprise to market watchers. Saba hired investment bank Morgan Stanley last year to explore a potential sale.
The move marks a new chapter in what was a tumultuous period for the company. In 2013, Nasdaq delisted Saba’s shares after an accounting scandal that resulted in founder Bobby Yazdani resigning as CEO. An SEC investigation found that it had misstated its earnings and on Tuesday announced that two former chief financial officers will have to return nearly $500,000 in bonuses and profits they made from rising stock prices.
“Over the course of Saba’s comprehensive review, the Board of Directors and our advisors evaluated a wide range of strategic alternatives and engaged with a number of parties,” said Bill Russell, Saba’s non-executive chairman in a press release. “We are pleased to have reached this agreement with Vector, which provides significant cash value for our shareholders.”
Saba provides learning and development software as well as a suite of talent management and enterprise collaboration tools. The 17-year-old company’s customer base includes 2,200 global clients.
The deal is subject to customary closing conditions and is expected to be finalized in the coming months, according to the news release.