The mystery suitors in an ongoing bidding war for Santa Ana’s MSC.Software Corp. have been revealed as San Francisco-based private equity firms Vector Capital Corp. and Golden Gate Capital, according to a story in New York-based trade publication the Deal.com.
Golden Gate focuses on investments in technology and retail with some $9 billion under management.
Vector Capital has some $2 billion under management and invests in technology companies that have at least $30 million in revenue. Last year, Vector acquired Irvine-based printer maker Printronix Inc. in a $108 million buyout.
On Tuesday, MSC said a group of undisclosed private equity investors,now believed to be Vector and Golden Gate,upped their offer for the maker of industrial simulation software.
MSC hasn’t named the firms in regulatory filings. It said it will do so if it enters into an acquisition agreement with the group.
The duo now is offering $367 million for MSC, topping the latest $361 million offer from Palo Alto-based private equity firm Symphony Technology Group LLC.
The dueling private equity suitors have been trading offers for MSC for most of this month, after Symphony in July first offered $338 million.
Since Sept. 9, the two suitors have made five higher offers between them for MSC.
Symphony has until Monday to up its price or walk away after the latest counter offer, MSC said.
MSC said Wednesday it is delaying a shareholder meeting set for Sept. 30 to vote on the original offer from Symphony.
MSC makes simulation software used to test designs of prototypes for military, aerospace and industrial uses.
The bidding war caps 10 years of troubles for the company.
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.
Customers include top tier defense contractors, including Boeing Co. and Northrop Grumman Corp.
