Bain, Hellman & Friedman vying to acquire DocuSign -sources

Adevinta ASA

11/01/2024 21:08

(Updates with share reaction in paragraph 7)
    By Milana Vinn and Anirban Sen
       NEW YORK, Jan 11 (Reuters) - Bain Capital and Hellman &
Friedman are competing to acquire DocuSign Inc  DOCU.O , the
provider of online signature services with a market value of
about $12.5 billion, according to people familiar with the
matter. 
    The two private equity firms are among the final bidders in
the auction for DocuSign, which is set to be one of the biggest
leveraged buyouts of 2024, the sources said. 
    While the investment firms have not joined forces, it is
possible that they may partner down the line to clinch a deal,
the sources added. An outcome is expected in the coming weeks. 
    Blackstone Inc  BX.N , another buyout firm, held talks about
a potential deal with DocuSign but is no longer in contention,
according to two of the sources.
    The sources cautioned that no transaction is certain and
asked not to be identified because the matter is confidential. 
    Representatives for Bain and Hellman & Friedman declined to
comment. DocuSign and Blackstone did not immediately respond to
a request for comment.  
    DocuSign shares ended trading on Thursday up 9.3% at $61.35
on the news. 
    The Wall Street Journal reported in December that DocuSign
was exploring a sale, without identifying any suitors.
    DocuSign went public in 2018 at a $6 billion valuation. Its
technology allows customers to sign documents online from any
electronic device. It counts large corporations such as
T-Mobile, United Airlines and Thermo Fisher among its clients.
    Last month, DocuSign reported quarterly adjusted earnings of
79 cents​​ per share for the quarter that ended in October,
higher than the 57 cents it posted a year earlier. Revenue rose
8.5% to $700.4 million from a year ago.
    A spike in financing costs in the last two years made
financing leveraged buyouts more expensive and big deals hard to
clinch. Yet some large transactions are slowly breaking through,
as the financing outlook improves.  
    Blackstone and Permira unveiled a deal in November to buy
European online classifieds company Adevinta ASA  ADEA.OL  for
about 14 billion euros ($15.36 billion). 
    In July, buyout firm GTCR agreed to buy a majority stake in
Worldpay, the merchant services business of Fidelity National
Information Services  FIS.N , in a deal that valued the unit at
$18.5 billion.     
 ($1 = 0.9112 euro)

 (Reporting by Anirban Sen and Milana Vinn in New York; editing
by Jonathan Oatis)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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