According to the latest Gartner Magic Quadrant for RPA the industry is led by 4 leaders – UiPath, Automation Anywhere, Microsoft, and Blue Prism. The first three are headquartered in the US whereas Blue Prism was the only one from the UK. Yesterday, the RPA industry saw and heard the breaking news that this fact is going to be changed because the British vendor has recently approved a £1.1bn ($1.5B) takeover offer from US private equity firm Vista Equity Partners that is going to merge Blue Prism into its other asset, Tibco Software, headquartered in the US as well. Thus we can state that all the four aces of the RPA industry are going to be consolidated in the same deck, at least in terms of geography. Now let’s learn about some details of the Blue Prism Acquisition news.
As we reported before, Blue Prism has attracted attention from multiple US private equity outfits in the last few weeks, with TPG Capital also conducting discussions. Ultimately, of the two Texas-based firms, Vista won out. The competition caused Blue Prism’s share price to climb more than 39% earlier this month. Vista is a large firm with about $81bn of assets under management, focusing on enterprise software and data services. It plans to combine Blue Prism with Tibco, a software company it bought in 2014 for $4.3bn.
In a statement about the M&A deal, Blue Prism described the potential synergies with Tibco. According to the statement, the proposed Blue Prism-Tibco business combination:
- “will yield significant synergies and market differentiation, combining the product and R&D investment of the two businesses.”
- Vista “believes that Blue Prism would benefit from the opportunity to gain access to Tibco’s large global blue-chip enterprise customers to increase their penetration within the world’s largest customers, as well as benefiting from greater access to long-term capital under private ownership.”
- Vista also “believes that Tibco’s existing business would benefit from the opportunity to market a broader product offering to existing and new customers.”
- Plus, “Tibco brings a great depth of knowledge in multiple industries including manufacturing, energy, and transportation which Blue Prism also serves today.”
- Furthermore, “Tibco will expand Blue Prism’s technological advantage by providing access to industry-leading technologies. These synergies will present significant opportunities to deliver both Tibco and Blue Prism’s products to each other’s installed base.”