By Milana Vinn
-SAP, Europe’s largest software provider, offered to buy accounting software firm BlackLine for nearly $4.5 billion in June but was rebuffed and is now considering whether to pursue the company again, according to a copy of the offer letter reviewed by Reuters and a person familiar with the matter.
The German software giant, which is working with JPMorgan on the deal, submitted a formal, non-public offer of $66 per share on June 18, but BlackLine wasn’t interested in a deal and rejected the advance, according to the letter and person familiar with the talks. The offer represented a 31% premium to the 60-day average price of $50.50. In the offer letter, SAP said it doesn’t need outside financing to close the deal.
Private equity firm Clearlake Capital holds nearly 9% of BlackLine’s shares and would have a say in a potential sale as a large shareholder. The Vanguard Group and BlackRock are other top shareholders through their fund families.
SAP is now weighing whether it wants to reopen negotiations, although nothing’s been decided and it hasn’t sent another formal offer, according to the person familiar with the matter. They asked not to be identified since the discussions are private.
SAP and JPMorgan declined to comment. BlackLine, Morgan Stanley and Clearlake did not immediately respond to requests for comment.
(Reporting by Milana Vinn in New York; Editing by Dawn Kopecki; Editing by Leslie Adler)
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