Elliott Management says it would pay $2.3 billion for the technology company.
Investment firm Elliott Management Corp. this week made an offer to buy Compuware Corp., parent company of web performance monitoring service Compuware Gomez for $11 per share, or $2.3 billion total. Elliott and its affiliates in the funds Elliott Associates L.P. and Elliott International L.P. currently own or have an economic interest in 8% of Compuware’s common stock, the firm says.
Compuware provides large organizations with a variety of software and professional services designed to ensure the smooth operation of technology. Its Compuware Gomez unit provides web performance monitoring services for 115 retailers in the Internet Retailer Top 500 Guide and one retailer in the Second 500 Guide.
Compuware acquired Gomez for $295 million in 2009.
Compuware says its board will review all aspects of the unsolicited proposal with its legal and financial advisors. Elliot could not be reached for comment. The investment firm claims the price it offers represented a 15% premium over the company’s market value before Elliott disclosed its offer.
“Compuware is a long-established company that we have followed closely for several years,” writes Elliott in a letter to Compuware’s board of directors outlining the proposal. “We believe in the quality of Compuware's assets—however, its execution, profitability and growth have meaningfully underperformed.”