RPA Software Buyout Bidding War: Who Will Acquire Blue Prism?

The bidding war for robotic process automation (RPA) software provider Blue Prism Group continues. The latest offer, from private equity firm Vista Equity Partners, values Blue Prism at $1.63 billion — or slightly more than a $1.56 billion offer that  SS&C Technologies made in mid-November 2021.

The big question: Will SS&C sweeten the pot and submit a counter offer to buy Blue Prism? The answer will surface in the next few days. Indeed, SS&C must, by 5:00 p.m. on December 2, 2021, announce whether it intends to make a counter offer, according to a Blue Prism statement issued on November 25, 2021.

The Pending Vista Equity-Blue Prism Deal: Financial Details, Rivals

Vista Equity Partners initially announced plans to acquire Blue Prism Group for $1.5 billion in September 2021. SS&C submitted a counter-bid in mid-November 2021. Then, Vista Equity submitted the higher bid in late November 2021.

If Vista Equity wins the bidding war, the private equity firm plans to merge Blue Prism into Tibco Software. Vista has owned Tibco since 2014.

Blue Prism competes against Automation AnywhereUiPath and Microsoft Power Automate in the RPA software market — which has generated strong M&A activity. Key buyers in the RPA sector include IBMMicrosoftSalesforce and ServiceNow.

More than 2,000 businesses leverage Blue Prism’s software for workforce automation capabilities. Blue Prism’s valuation was roughly $1.11 billion before word of the M&A discussions emerged in early September 2021.

What Is RPA Software?

RPA software allows businesses to write code and bots that rapidly automate manual tasks across multiple departments — from IT service desks to HR, finance, customer support and more.

The global RPA software market is expected to reach $13.74 billion by 2028, up from $1.57 billion in 2020. The market’s compound annual growth rate from 2021 to 2028 is expected to be 32.8%, Grand View Research predicts.

Much of the RPA software industry focuses on enterprise customers. Still, RPA may even eventually catch on in the SMB market as MSPs seek to further automate internal and customer operations. Key RPA software providers in the MSP and SMB market include ElectroNeek and Rewst.

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