ClickSoftware Offering Itself for Sale for $300 Million

Piper Jaffrey has been selected to manage the sale of the company.

Reuters

ClickSoftware, the Israeli company whose software helps companies better manage their workforces, is putting itself up for sale and asking $300 million, a 25% premium on its Nasdaq-traded share prices as on Tuesday, TheMarker has learned.

Piper Jaffrey has been selected to manage the sale of the company, which has offices in Petah Tikva in Israel and California and employs 300 people. The company declined to comment, saying it doesn’t respond to unverified reports.

The sale won’t be the first time ClickSoftware sought to market itself. Several years ago it began contacts to be acquired by the German business-software company SAP but they didn’t lead to a deal. Yet Sergey Vastchenok, an analyst at Oppenheimer & Company, said the company’s move into cloud computing improved its chances.

“An exit for ClickSoftware was always the most likely option, especially after its recent acquisition in cloud,” he said. “Buying Xora, which it did in 2014, boosted in cloud operations, which generated $5.3 million or 17% of its revenue, compared with $500,000 the same quarter a year ago.”

He said management estimated that cloud computing would generate as much as $30 million in annual revenue and serve as the company’s growth engine in the next few years. Vastchenok said a $300 million valuation for ClickSofwtare was probably a little low because it has $50 million of cash on its books. ClickSoftware shares were down 0.3% at $7.05 Tuesday in mid-afternoon trading.

The company’s biggest shareholders are the billionaire George Soros, through his Soros Fund, which holds 9.9% of the stock; FMR, which holds another 9%; and Moshe Ben Bassat, who founded the company in 1996 and now serves as its CEO, and his wife Idit.