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Thu, Oct. 23, 4:24 PM
Wed, Oct. 15, 12:47 PM
Mon, Oct. 13, 12:46 PM
Fri, Oct. 10, 4:45 PM
- Ahead of its sale to Thoma Bravo, Compuware (NASDAQ:CPWR) is fully distributing its remaining 31.8M-share equity interest in cloud collaboration platform provider Covisint (NASDAQ:COVS).
- The shares will be distributed to Compuware shareholders on a prorated basis on Oct. 31. Compuware estimates investors will get 0.14 Covisint shares for each Compuware share they own.
Tue, Sep. 2, 9:53 AM
- P-E firm Thoma Bravo is buying Compuware (NASDAQ:CPWR) for $2.5B. The firm is paying $10.43/share in cash, and assigns a $0.67/share value to the distribution of Compuware's remaining Covisint (COVS +8.5%) shares. $0.18/share is deducted from the buyout price for tax payments related to the Covisint spinoff.
- The deal ends a very lengthy sales process that reportedly saw several bids from P-E firms, and resulted in multiple activists getting involved. Elliott Management (9.5% stake) backs Thoma Bravo's bid.
- Shares remain halted.
- Earlier: Compuware reportedly in sale talks
Tue, Jul. 29, 4:55 PM
Fri, May. 23, 12:45 PM
Thu, May. 22, 4:45 PM
Thu, Mar. 13, 12:48 PM
Fri, Jan. 24, 12:47 PM
Thu, Jan. 23, 4:34 PM| Comment!
Nov. 14, 2013, 11:23 AM
- Activist fund Starboard, a ~5% shareholder in Compuware (CPWR +2.7%), has written a letter to the company's board prodding it to consider strategic alternatives. Starboard believes Compuware is "extremely undervalued relative to the quality of its businesses and the potential cash flow that the Company could generate after restructuring its expenses."
- The fund outlines a number of proposals that would reward long-term shareholders, including a $450M share repurchase program (which would decrease shares outstanding by ~19%), divestment of non-core assets like Changepoint and Uniface to fund further buybacks, a distribution of Compuware's 80% stake in Covisint (COVS), and a dividend hike to $0.60/share.
- On the operating side, Starboard calls Compuware's margins "unacceptable," noting that bloated G&A expenses (16% of sales) have resulted in EBITDA margins that "are significantly lower than its peers." Starboard believes Compuware could reach EBITDA margins of 35% by adding $50M-$70M in cost reductions on top of its current $80M-$100M target.
- Finally, Starboard questions Compuware's board composition and its ability to execute a successful restructuring, writing, "only one of the Board's eleven members was an independent director with relevant software industry experience ... the average tenure of the other Board members is over 10 years."
- Compuware has stated recently that it is attempting to shop itself, but rejected an $11/share offer from activist investor Elliott Management back in January.
Oct. 24, 2013, 5:08 PM
Sep. 26, 2013, 12:29 PM
- After pricing its 6.4M-share IPO at $10, Covisint (COVS) opened at $12.77 and is currently at $12.92, up 29.2%. That's good for a market cap of $470.3M, or 5.2x FY13 (ended March '13) sales.
- Compuware (CPWR -0.4%), which owns 82% of the cloud engagement/collaboration platform provider post-IPO, is off slightly. Compuware has said it plans to fully distribute its Covisint stake to shareholders within 12 months of the IPO.
- S-1, IPO preview
Sep. 26, 2013, 9:03 AM
- Compuware (CPWR) prices 6.4M shares (960K overallotment) of its Covisint (COVS) unit spin-off at $10/share. Trading is expected to begin today on the Nasdaq under the symbol "COVS."
- The unit's revenues rose 21.5% in FY 2013 to $90.7M, while net loss expanded to $5.6M from $3.3M in the previous year. (S-1)
- The move to spin off its business process cloud platform division comes after Compuware began shopping itself to P-E firms in Aug. and after that plan stalled in "limbo."
- Shares closed at $11.20 yesterday, above the $11 mark of an offer Compuware rejected back in Jan.
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COVS vs. ETF Alternatives
Covisint Corp provides cloud engagement platform. It enables organizations to securely connect, engage and collaborate with large, distributed communities of customers, business partners and suppliers.
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