Coupa Software jumps 35% on report Vista Equity exploring takeover

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Coupa Software (NASDAQ:COUP) soared 35% on a report that private equity firm Vista Equity is exploring a possible purchase.

Vista has held discussions with Coupa (COUP), according to a Bloomberg report. No deal is imminent and Vista may decide against a deal.

Shares of Coupa (COUP), which has a market cap of $3.5B, have plunged more than 70% this year through Tuesday. Last month Piper Sandler downgraded the stock to neutral, citing increased financial risk and "the emergence of a new class of competition."

Last month, RBC listed Coupa Software (COUP) among a number of potential takeover targets for private equity firms.

RBC analyst Rishi Jaluria also listed Duck Creek Technologies (DCT), New Relic (NEWR) and Teradata (TDC) as possible PE takeover names. DCT rose 1.1% on Wednesday, NEWR gained 2.7%, while TDC ticked up 1%, all nearing highs after the Coupa news.

Coupa (COUP) has short interest of 9.8%.

Vista Equity has been busy purchasing tech companies this year, including a deal to buy cybersecurity firm KnowBe for $4.6 billion last month and an agreement to purchase tax software provider Avalara for $8.2 billion in August.