BURLINGTON, Mass. - Progress Software Corp. (NASDAQ: NASDAQ:PRGS), a provider of infrastructure software, has confirmed it is considering making an offer to acquire all issued and to be issued share capital of MariaDB plc at $0.60 per share. This potential transaction is being evaluated as a significant premium over recent offers and market prices, with a 9% increase over the $0.55 per share bid by K1 Capital announced on February 16, 2024, an 88% premium over MariaDB’s average closing share price of the last 30 trading days, and a 216% premium over its closing share price on February 5, 2024.
The offer under consideration would leverage Progress Software's expertise in database management and its longstanding relationship with the open-source community. Progress Software believes that acquiring MariaDB could benefit its customers and stakeholders, aligning with the company's disciplined approach to acquisitions. MariaDB is known for its scalable, open-source relational database management systems, which Progress finds complementary to its own offerings.
As of now, there is no certainty that an offer will be made or what the terms of any such offer would be. In accordance with the Irish Takeover Rules, Progress Software has until 5:00 p.m. (New York time) on May 7, 2024, to either announce a firm intention to make an offer for MariaDB or to state that it does not intend to make an offer.
Progress Software has a market capitalization of approximately $2.3 billion and has been listed on NASDAQ for over three decades. The company boasts a broad portfolio of infrastructure software products and claims a net retention rate of around 100%, indicating strong customer loyalty.
InvestingPro Insights
As investors evaluate Progress Software Corp.'s (NASDAQ: PRGS) potential acquisition of MariaDB, it's essential to consider some key financial metrics and expert analysis provided by InvestingPro. With a solid market capitalization of $2.31 billion, Progress Software's financial health appears robust. The company's impressive gross profit margin, which stood at 86.12% for the last twelve months as of Q1 2023, underscores its efficiency in managing costs relative to its revenue.
Moreover, the company's stock is characterized by low price volatility, which might appeal to investors looking for stability in their portfolio. This stability is also reflected in the company's price-to-earnings (P/E) ratio, which is adjusted to 26.68, indicating the market's confidence in its earnings stability.
InvestingPro Tips further highlight that analysts predict Progress Software will be profitable this year, which is a continuation of its profitability over the last twelve months. These insights are crucial for stakeholders considering the proposed acquisition's potential impact on the company's financial performance.
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