Stamped Out? Behind STMP's Public-to-Private Pivot

Stamps.com valued at $6.6 billion…
Buyer is one of the largest software-focused private equity firms in the U.S…
Shareholders to receive $330 per share…

Stamps.com (NASDAQ: STMP) will soon vanish from the stock market.

The company announced today it has “entered into a definitive agreement to be acquired by Thoma Bravo, a leading software investment firm.”

Ken McBride, Stamps.com’s Chairman and CEO, said, “With the financial and operational support of Thoma Bravo, Stamps.com can continue to innovate and pursue growth opportunities to capture the expanding e-commerce shipping market and extend our position as the leading global multi-carrier e-commerce shipping software company. This transaction is a testament to the excellence and hard work of all of our employees and their relentless dedication to our customers and partners throughout the world.”

“We’ve been tracking the impressive growth of Stamps.com for many years and are excited to partner with the Stamps.com team to support the Company in continuing to drive cutting edge product innovation, expansion into new markets, and delivery of an even greater level of service and support to its impressive customer base,” said Brian Jaffee, a Principal at Thoma Bravo. “The e-commerce landscape is rapidly evolving and we look forward to partnering with the Stamps.com team to continue building on the Company’s leading position in e-commerce shipping solutions.”

News of the deal sent STMP shares sharply higher and, at writing, daily trading volume was around 3.5 million shares.

Nitty-Gritty

All-cash deal values Stamps.com at $6.6 billion, including debt
Acquisition expected to close in Q3 2021
Thoma Bravo will pay stockholders $330 in cash per share — up 67% from the closing price of $197.72 per share on July 8
Stamps.com will become a private company
Stamps.com Board of Directors has unanimously approved the deal
STMP shareholders will hold a special meeting to vote on the acquisition
Agreement includes 40-day “go-shop” period which allows the company to consider alternate offers
Stamps.com has nearly 732,000 monthly subscribers and allows users to print postage from home
Thoma Bravo has $78 billion in assets under management, portfolio includes information technology services provider SolarWinds and cybersecurity firm McAfee
This is Thoma Bravo’s third such acquisition this year after announcing plans to take security software vendor Proofpoint and data solutions provider Talend private earlier this year