African-American billionaire Robert Smith’s Vista Equity mulls acquisition of Coupa Software

Vista Equity Partners, a global investment firm led by America’s wealthiest Black businessman, Robert Smith, is considering acquiring Coupa Software Inc., a California-based business spends management (BSM) technology platform.

The decision, which was revealed by sources with knowledge of the matter, comes more than two months after the Smith-led private equity firm made an all-cash offer of $4.22 billion to buy KnowBe4, a Florida-based maker of cybersecurity software, as private equity firms continue to benefit from the decline in the value of technology companies.

Vista has held talks with representatives from Coupa Software in line with its plans to acquire the California-based company, but people familiar with the matter told Bloomberg that the deal is not imminent because Vista may decide not to pursue a transaction.

Coupa shares on the tech-heavy Nasdaq Stock Exchange increased nearly 29 percent to $58.93 per share in response to the news of the deal, as investors scrambled to acquire shares in the company that helps companies track and manage their purchasing of goods and services.

With more than $50 billion in assets and a yearly return of 22 percent since its inception in 2000, Vista Equity Partners has quickly grown into an industry leader, as well as one of the most active private equity investors in the technology sector.

The private equity firm announced nearly a week ago that it had raised $11 billion for its latest flagship fund, Vista Equity Partners VIII, which will be used to make 18 to 25 control investments in large and higher mid-market enterprise software and technology companies primarily in North America.

The $11 billion raised under Vista Equity Partners VIII, the firm’s $20-billion flagship fund that debuted earlier this year, is the third-largest amount of capital raised in the market among private equity funds.