UserTesting, Inc. (USER), a video-based human insight company, announced Thursday that it has entered into a definitive agreement to be acquired by Thoma Bravo, a software investment firm, and Sunstone Partners for $7.50 per share. The all-cash deal is valued at around $1.3 billion.<\/p>\n
Separately, UserTesting reported narrower net loss per share and higher revenues in its third quarter.<\/p>\n
In pre-market activity on the NYSE, UserTesting shares were trading at $7.45, up 93.01 percent.<\/p>\n
The transaction, which was unanimously approved by the UserTesting board of directors, is currently expected to close in the first half of 2023, subject to customary closing conditions.<\/p>\n
Upon completion of the transaction, UserTesting’s stock will no longer be publicly listed and UserTesting will become a privately held company.<\/p>\n
The offer represents a premium of approximately 94 percent over UserTesting’s closing stock price on October 26, and a premium of approximately 97 percent over the volume weighted average price of UserTesting’s shares for the 30 trading days.<\/p>\n
Following the deal closure, Thoma Bravo and Sunstone Partners intend to combine UserTesting and UserZoom, which Thoma Bravo acquired majority control of in April 2022.<\/p>\n
UserTesting’s CEO, Andy MacMillan, will lead the combined company.<\/p>\n
The agreement includes a “go-shop” period expiring on December 10, which allows the UserTesting board of directors and its advisors to actively initiate, solicit and consider alternative acquisition proposals from third parties.<\/p>\n
In the deal, Morgan Stanley & Co. LLC is serving as exclusive financial advisor to UserTesting. <\/p>\n
In its third quarter, UserTesting’s net loss widened to $15.19 million from last year’s loss of $9.64 million, while net loss per share narrowed to $0.11 from prior year’s loss of $0.49 on higher share count.<\/p>\n
Adjusted net loss was $6.4 million, or $0.04 per share, compared to loss of $8.7 million, or $0.45 per share in the same period last year.<\/p>\n
Total revenue went up 28 percent to $49.41 million from $38.65 million last year. <\/p>\n