Houston Software Company Ramps Up Acquisition Strategy

December 8, 2014-

By Joe Martin, Reporter, Houston Business Journal

Houston-based software company, PROS Holdings Inc. (NYSE: PRO), announced this week plans to offer $125 million in convertible notes to qualified institutional buyers in a move that one company executive says gives the company flexibility for potential acquisitions down the road.

This is the first time the company has done a capital raise since it went public in 2007,Tim Girgenti, chief strategy officer, told the Houston Business Journal. He added that while there was no merger or acquisition imminent at the time, they are “a very big part of our growth strategy going forward.”

“This gives us the flexibility to act quickly and smartly,” Girgenti told the HBJ.

PROS has made two acquisitions in just over a year, including San Francisco-based SignalDemand and French company Cameleon Software.

PROS is the second-largest software company in Houston, with 502 local employees and $144.8 million in revenue in 2013, according to a recent earnings report.

The money will be used primarily for “general corporate purposes, including working capital, capital expenditures, potential acquisitions and strategic transactions,” according to a statement. The notes would be due Dec. 1, 2019.

The convertible notes, if switched to shares of the company’s stock, would be valued at approximately $33.79 per share of the company’s stock, or 30 percent above the closing price, according to a statement. PROS expects to receive approximately $120.2 million from the sale.

“This is an indication of a strong company getting stronger,” said Girgenti.