A bidding war is playing out for Santa Ana industrial software maker MSC.Software Corp.
Two private equity bidders have made dueling, higher offers for the company with an undisclosed group of private equity firms entering the highest bid at $361 million.
MSC said it plans to enter into an acquisition deal with the undisclosed private equity buyers next week.
At that time, the company presumably will disclose the names of the firms behind the offer.
It also said it passed on a raised offer from Palo Alto-based private equity firm Symphony Technology Group LLC, which in July offered $338 million to buy MSC.
MSC said Symphony had raised its offer to $354 million, matching an initial counter offer by the undisclosed private equity group.
That prompted the undisclosed private equity group to raise its offer.
Symphony has five days to up its offer for MSC.
Shares of MSC were flat on a market value of about $360 million as the latest offers match a run-up seen since Symphony’s first offer two months ago.
The company makes software used to simulate tests of designs in the automotive, aerospace and other industries.
The bidding war caps nearly 10 years of troubles for MSC.
Distractions brought on by several government probes, acquisitions that didn’t pay off and failed turnaround attempts spelled the end for an independent MSC, which once ranked among Orange County’s biggest software makers.
Activist investor Elliott Management Corp., a unit of New York hedge fund Elliott Associates LP, played a role in Symphony’s bids.
Elliott, which is set to provide some debt and private equity financing to help fund the deal, has a roughly 13% stake in MSC and is its biggest shareholder.
MSC is an attractive private equity buyout because of its steady stream of ongoing revenue from licenses and service on its software.
*For more background on MSC,
click here for a prior Business Journal article.
