Vista Equity Partners acquired Cloud-computing software maker Tibco in a $4.3 billion deal on Mon.
Palo Alto,Calif.-based business software company Tibco sealed the deal with private equity firm Vista Equity Partners.
Tibco Software was reportedly a target for activist investors like Eminence Capital and Praesidium Investment Management Company who wrote a letter to Tibco's management to do something about the disappointing sales of about $251 million during the second quarter.
Vista Equity Partners will shell out $24 per share of Tibco, reported to be a 26 percent premium compared to Tibco's stocks closing price on Sept. 23.
Tibco Software shares closed at 21.2 percent higher at $23.65 per share.
Other than Tibco Software, the most recent computer software company that went private are Compuware and BMC Software.
Both companies were also reportedly pressured by the same activist investor that pushed Tibco to go private, Praesidium Investment Management Company. Another activist investor was Starboard Value, the company that pushed Internet giant Yahoo to buy AOL.
Tibco Software provides services like software development for keeping track of inventory and cross-selling merchandise.
The company caters to clients like Yahoo, NASDAQ, Oracle, Major League Baseball and Reliance Industries.
Increasing competition from rival Oracle Corporation and other competitors caused Tibco's share price to fall down dramatically by 25 percent in the last 12 months.
The company has reported a decline in total revenue as well and has been re-evaluating their strategies since Aug 16.
"As a private company, Tibco will have added flexibility to serve our customers and execute on our long-term strategy," Chief Executive Officer Vivek Ranadivé said in a statement.
Meanwhile, Vista Equity is a company that focuses on technology-based companies is better known for its active participation in operating enterprise software businesses.
Both Tibco Software and Vista Equity foresee the deal to close in the coming fourth quarter.
