[8-K] PROS Holdings, Inc. Reports Material Event
PROS Holdings, Inc. agreed to be acquired by investment funds affiliated with Thoma Bravo for $23.25 per share in cash, with a newly formed Parent (Portofino Parent, LLC) and Merger Sub completing a merger that will leave PROS as a wholly owned subsidiary of Parent. The filing describes treatment of equity awards: vested MSUs become cash replacement MSU amounts subject to existing vesting/settlement rules and payroll payment; unvested, non-earned MSUs will be cancelled without payment. The Company Stock Purchase Plan will stop new enrollments, terminate at a Final Exercise Date no later than five business days before the Effective Time, and leftover payroll contributions will be refunded. The filing also references actions to repurchase Convertible Notes as a result of the transactions and lists customary risks that could prevent or delay closing, including shareholder approval, regulatory approvals, potential termination fees, operational disruption and litigation.
PROS Holdings, Inc. è stato concordato che venga acquisita dai fondi d'investimento affiliati a Thoma Bravo per $23,25 per azione in contanti, con una capogruppo formata di recente (Portofino Parent, LLC) e una Merger Sub che completeranno una fusione che farà di PROS una controllata interamente di proprietà della capogruppo. Il documento descrive il trattamento dei premi azionari: i MSU maturi diventano importi MSU sostitutivi in contanti soggetti alle regole di vesting/pagamento della busta paga; gli MSU non maturati e non maturati verranno cancellati senza pagamento. Il piano di acquisto azionario della società interromperà nuove iscrizioni, terminerà entro cinque giorni lavorativi prima della Effective Time con una data di esercizio finale e i contributi restanti della retribuzione saranno rimborsati. Il fascicolo fa anche riferimento ad azioni di riacquisto di Convertible Notes a seguito delle operazioni e indica i rischi consueti che potrebbero impedire o ritardare la chiusura, tra cui l'approvazione degli azionisti, le approvazioni regolamentari, eventuali penali di terminazione, interruzioni operative e contenziosi.
PROS Holdings, Inc. acordó ser adquirida por fondos de inversión afiliados a Thoma Bravo por $23.25 por acción en efectivo, con una nueva sociedad holding (Portofino Parent, LLC) y una Merger Sub que completarían una fusión dejando a PROS como una subsidiaria única de Parent. El expediente describe el tratamiento de las recompensas de acciones: las MSU ya vestidas se convertirán en importes de MSU en efectivo de reemplazo, sujetos a las reglas existentes de vesting/pago de nómina; las MSU no vestidas y no ganadas serán canceladas sin pago. El Plan de Compra de Acciones de la Compañía dejará de permitir nuevas inscripciones, terminará en una Fecha de Ejercicio Final no más de cinco días hábiles antes del Effective Time, y las contribuciones de nómina restantes serán reenviadas. El expediente también menciona acciones para recomprar Notas Convertibles como resultado de las transacciones y enumera riesgos habituales que podrían impedir o retrasar el cierre, incluyendo la aprobación de los accionistas, aprobaciones regulatorias, posibles penalidades de terminación, interrupciones operativas y litigios.
PROS Holdings, Inc.가 Thoma Bravo에 소속된 투자 펀드와 주당 현금으로 $23.25에 인수하기로 합의했으며, 신규 설립된 지주회사(Portofino Parent, LLC)와 합병 자회사(Merger Sub)가 합병을 완료하여 PROS를 지주회사의 전액 소유 자회사로 만들 것입니다. 제출 문서는 주식 보상에 대한 처리를 설명합니다: 이미 행사 권리가 확정된 MSU는 현금 대체 MSU 금액으로 바뀌되 기존의 vesting/결제 규칙과 급여 지급 규정의 적용을 받습니다; 미확정 및 미획득 MSU는 취소되고 지급되지 않습니다. 회사의 주식 매입 계획은 신규 가입을 중단하고 Effective Time보다 늦지 않게 5영업일 전의 최종 행사일에 종료되며 남은 급여 기여금은 환급됩니다. 또한 거래로 인한 전환사채의 자사매입 조치가 언급되며, 주주 승인, 규제 승인, 해지 수수료, 운영 중단 및 소송 등 종료를 방해하거나 지연시킬 수 있는 일반적인 위험이 목록으로 제시됩니다.
PROS Holdings, Inc. a accepté d'être acquise par des fonds d'investissement affiliés à Thoma Bravo pour 23,25 $ par action en espèces, avec une société mère nouvellement créée (Portofino Parent, LLC) et une Substitution de Fusion qui réaliseront une fusion laissant PROS comme une filiale entièrement détenue par la Maison Mère. Le document décrit le traitement des attributions d'actions : les MSU acquis deviennent des montants MSU en espèces de remplacement soumis aux règles de vesting et de paie existantes; les MSU non acquis et non gagnés seront annulés sans paiement. Le Plan d'Achat d'Actions de la Société cessera les nouvelles inscriptions, se terminera à une Date d'Exercice Finale au plus tard cinq jours ouvrables avant l'Heure Effective, et les contributions de paie restants seront remboursés. Le dossier fait également référence à des actions de rachat d'Actions Convertibles résultant des transactions et énumère les risques usuels susceptibles d'empêcher ou de retarder la clôture, y compris l'approbation des actionnaires, les approbations réglementaires, les éventuels frais de résiliation, les perturbations opérationnelles et les litiges.
PROS Holdings, Inc. sollte von Investmentfonds, die mit Thoma Bravo verbunden sind, für 23,25 $ pro Aktie in bar übernommen werden, wobei eine neu gegründete Muttergesellschaft (Portofino Parent, LLC) und eine Fusion Sub die Fusion abschließen und PROS zu einer vollständig von der Muttergesellschaft abhängigen Tochter machen würden. Die Einreichung beschreibt die Behandlung von Aktienbeteiligungen: vestete MSUs werden in Bar-ersatz MSU-Beträge umgewandelt, unterliegen jedoch den bestehenden Vesting-/Abrechnungsregeln und der Gehaltsabrechnung; unvestete, nicht verdiente MSUs werden ohne Zahlung storniert. Der Company Stock Purchase Plan wird neue Anmeldungen stoppen, am Final Exercise Date nicht später als fünf Werktage vor der Effective Time enden, und verbleibende Gehaltsbeiträge werden erstattet. Die Unterlage verweist zudem auf Maßnahmen zum Rückkauf von Wandelanleihen infolge der Transaktionen und listet übliche Risiken auf, die den Abschluss verhindern oder verzögern könnten, einschließlich Aktionärszustimmung, behördliche Genehmigungen, potenzielle Kündigungsgebühren, betriebliche Störungen und Rechtsstreitigkeiten.
PROS Holdings, Inc. وافقت أن تُستَحوذ عليها من قبل صناديق استثمارية مرتبطة بـ Thoma Bravo بمبلغ $23.25 للسهم نقداً، مع تشكيل كيان أمّ جديد (Portofino Parent, LLC) وشركة دمج فرعية ستكمل الاندماج مما يجعل PROS شركة فرعية مملوكة بالكامل للأم. وتصف الوثيقة معاملة جوائز الأسهم: تتحول MSUs المستحقة إلى مبالغ MSU نقدية بديلة تخضع لقواعد vesting/الاستحقاق الحالية والراتب؛ ستُلغى MSUs غير المستحقة وغير المحققة دون دفعة. سيتوقف خطـة شراء أسهم الشركة عن تسجيلات جديدة، وينتهي في تاريخ تنفيذ نهائي لا يتجاوز خمسة أيام عمل قبل Time الفعّالة، وسيتم رد المساهمات المتبقية من الرواتب. كما تشير الوثيقة إلى إجراءات لإعادة شراء سندات قابلة للتحويل نتيجة للصفقات وتدرج مخاطر اعتيادية قد تمنع أو تؤخر الإغلاق، بما في ذلك موافقة المساهمين، الموافقات التنظيمية، رسوم الإنهاء المحتملة، الاضطراب التشغيلي والدعاوى القضائية.
PROS Holdings, Inc. 已同意由与 Thoma Bravo 相关的投资基金以 $23.25 每股现金收购，形成的新控股公司（Portofino Parent, LLC）及并购子公司将完成合并，使 PROS 成为控股母公司全资子公司。 filing 描述了股权奖励的处理方式：已归属的 MSU 将转为现金替代 MSU 金额，受现有 vesting/结算与工资支付规则约束；未归属、未赚取的 MSU 将被取消且不支付任何款项。公司股票购买计划将停止新注册，在生效时间前不少于五个工作日的最终行权日结束，剩余的工资捐款将被退还。 文件还提及因交易而进行的可转换债券回购，并列出可能阻碍或延迟完成的常见风险，包括股东批准、监管批准、潜在的解约费、运营中断及诉讼。
- $23.25 per share cash consideration provides clear, fixed value to public shareholders
- Earned MSUs preserved as cash replacement amounts, maintaining economic value for vested award holders
- Explicit ESPP termination and refund mechanics reduce participant uncertainty
- Unvested, non-earned MSUs are cancelled without payment, which may negatively affect employees holding those awards
- Convertible Notes repurchase details are unspecified, leaving uncertainty on debt treatment
- Transaction completion is subject to shareholder and regulatory approvals, creating execution risk
Insights
TL;DR: Cash buyout at $23.25/sh by Thoma Bravo signals a standard PE take-private with negotiated equity award and debt mechanics.
The agreement is a typical private equity acquisition structure: fixed cash consideration per share simplifies valuation transfer to shareholders and limits post-signing market exposure. Treatment of MSUs retains economic recognition for earned units while cancelling non-earned units, which preserves deal economics for the buyer. The ESPP handling and refund mechanics are routine administrative steps to close outstanding employee purchase cycles. The reference to repurchasing Convertible Notes suggests the buyer or company will address capital structure pre- or post-close; details are not provided here. The extensive risk disclosures underline the conditional nature of the transaction pending shareholder and regulatory approvals and potential deal break scenarios.
TL;DR: Governance implications focus on equity-holder protections and clear settlement paths for employee awards, reducing post-close disputes.
The Merger Agreement specifies mechanics for equity compensation to reduce ambiguity at closing, which is governance-positive by clarifying payouts and cancellations. Automatic cancellation of non-earned MSUs without payment is material for employee stakeholders and may affect retention unless replacement incentives are provided by Parent. The ESPP termination timeline and refund process are explicit, limiting participant exposure. The filing appropriately lists standard closing risks; however, it lacks detailed timelines and the exact approach to Convertible Notes repurchase, leaving governance-level questions about creditor treatments unanswered.
PROS Holdings, Inc. è stato concordato che venga acquisita dai fondi d'investimento affiliati a Thoma Bravo per $23,25 per azione in contanti, con una capogruppo formata di recente (Portofino Parent, LLC) e una Merger Sub che completeranno una fusione che farà di PROS una controllata interamente di proprietà della capogruppo. Il documento descrive il trattamento dei premi azionari: i MSU maturi diventano importi MSU sostitutivi in contanti soggetti alle regole di vesting/pagamento della busta paga; gli MSU non maturati e non maturati verranno cancellati senza pagamento. Il piano di acquisto azionario della società interromperà nuove iscrizioni, terminerà entro cinque giorni lavorativi prima della Effective Time con una data di esercizio finale e i contributi restanti della retribuzione saranno rimborsati. Il fascicolo fa anche riferimento ad azioni di riacquisto di Convertible Notes a seguito delle operazioni e indica i rischi consueti che potrebbero impedire o ritardare la chiusura, tra cui l'approvazione degli azionisti, le approvazioni regolamentari, eventuali penali di terminazione, interruzioni operative e contenziosi.
PROS Holdings, Inc. acordó ser adquirida por fondos de inversión afiliados a Thoma Bravo por $23.25 por acción en efectivo, con una nueva sociedad holding (Portofino Parent, LLC) y una Merger Sub que completarían una fusión dejando a PROS como una subsidiaria única de Parent. El expediente describe el tratamiento de las recompensas de acciones: las MSU ya vestidas se convertirán en importes de MSU en efectivo de reemplazo, sujetos a las reglas existentes de vesting/pago de nómina; las MSU no vestidas y no ganadas serán canceladas sin pago. El Plan de Compra de Acciones de la Compañía dejará de permitir nuevas inscripciones, terminará en una Fecha de Ejercicio Final no más de cinco días hábiles antes del Effective Time, y las contribuciones de nómina restantes serán reenviadas. El expediente también menciona acciones para recomprar Notas Convertibles como resultado de las transacciones y enumera riesgos habituales que podrían impedir o retrasar el cierre, incluyendo la aprobación de los accionistas, aprobaciones regulatorias, posibles penalidades de terminación, interrupciones operativas y litigios.
PROS Holdings, Inc.가 Thoma Bravo에 소속된 투자 펀드와 주당 현금으로 $23.25에 인수하기로 합의했으며, 신규 설립된 지주회사(Portofino Parent, LLC)와 합병 자회사(Merger Sub)가 합병을 완료하여 PROS를 지주회사의 전액 소유 자회사로 만들 것입니다. 제출 문서는 주식 보상에 대한 처리를 설명합니다: 이미 행사 권리가 확정된 MSU는 현금 대체 MSU 금액으로 바뀌되 기존의 vesting/결제 규칙과 급여 지급 규정의 적용을 받습니다; 미확정 및 미획득 MSU는 취소되고 지급되지 않습니다. 회사의 주식 매입 계획은 신규 가입을 중단하고 Effective Time보다 늦지 않게 5영업일 전의 최종 행사일에 종료되며 남은 급여 기여금은 환급됩니다. 또한 거래로 인한 전환사채의 자사매입 조치가 언급되며, 주주 승인, 규제 승인, 해지 수수료, 운영 중단 및 소송 등 종료를 방해하거나 지연시킬 수 있는 일반적인 위험이 목록으로 제시됩니다.
PROS Holdings, Inc. a accepté d'être acquise par des fonds d'investissement affiliés à Thoma Bravo pour 23,25 $ par action en espèces, avec une société mère nouvellement créée (Portofino Parent, LLC) et une Substitution de Fusion qui réaliseront une fusion laissant PROS comme une filiale entièrement détenue par la Maison Mère. Le document décrit le traitement des attributions d'actions : les MSU acquis deviennent des montants MSU en espèces de remplacement soumis aux règles de vesting et de paie existantes; les MSU non acquis et non gagnés seront annulés sans paiement. Le Plan d'Achat d'Actions de la Société cessera les nouvelles inscriptions, se terminera à une Date d'Exercice Finale au plus tard cinq jours ouvrables avant l'Heure Effective, et les contributions de paie restants seront remboursés. Le dossier fait également référence à des actions de rachat d'Actions Convertibles résultant des transactions et énumère les risques usuels susceptibles d'empêcher ou de retarder la clôture, y compris l'approbation des actionnaires, les approbations réglementaires, les éventuels frais de résiliation, les perturbations opérationnelles et les litiges.
PROS Holdings, Inc. sollte von Investmentfonds, die mit Thoma Bravo verbunden sind, für 23,25 $ pro Aktie in bar übernommen werden, wobei eine neu gegründete Muttergesellschaft (Portofino Parent, LLC) und eine Fusion Sub die Fusion abschließen und PROS zu einer vollständig von der Muttergesellschaft abhängigen Tochter machen würden. Die Einreichung beschreibt die Behandlung von Aktienbeteiligungen: vestete MSUs werden in Bar-ersatz MSU-Beträge umgewandelt, unterliegen jedoch den bestehenden Vesting-/Abrechnungsregeln und der Gehaltsabrechnung; unvestete, nicht verdiente MSUs werden ohne Zahlung storniert. Der Company Stock Purchase Plan wird neue Anmeldungen stoppen, am Final Exercise Date nicht später als fünf Werktage vor der Effective Time enden, und verbleibende Gehaltsbeiträge werden erstattet. Die Unterlage verweist zudem auf Maßnahmen zum Rückkauf von Wandelanleihen infolge der Transaktionen und listet übliche Risiken auf, die den Abschluss verhindern oder verzögern könnten, einschließlich Aktionärszustimmung, behördliche Genehmigungen, potenzielle Kündigungsgebühren, betriebliche Störungen und Rechtsstreitigkeiten.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Emerging growth company
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| Item 1.01. | Entry into a Material Definitive Agreement. |
Agreement and Plan of Merger
On September 22, 2025, PROS Holdings, Inc., a Delaware corporation (the “Company”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Portofino Parent, LLC, a Delaware limited liability company (“Parent”), and Portofino Merger Sub, Inc., a Delaware corporation and wholly owned direct subsidiary of Parent (“Merger Subsidiary”), pursuant to which Merger Subsidiary will merge with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned direct subsidiary of Parent (the “Surviving Corporation”). Parent and Merger Subsidiary were formed by investment funds affiliated with Thoma Bravo, L.P. (“TB”) to acquire all of the Company’s outstanding shares of common stock (the “Company Common Stock”) for $23.25 per share, in cash, as described in more detail below. Capitalized terms used in this Current Report on Form 8-K but not otherwise defined herein have the meanings set forth in the Merger Agreement.
The board of directors of the Company (the “Board”) has unanimously approved the Merger Agreement and resolved to recommend approval of the Merger Agreement to the Company’s stockholders.
Effect on Capital Stock
At the Effective Time, each share of Company Common Stock outstanding as of immediately prior to the Effective Time (other than dissenting shares or any shares of Company Common Stock held by the Company as treasury stock or owned by Parent or any Subsidiary of the Company or Parent (including Merger Subsidiary)) will be cancelled and cease to exist and converted into the right to receive cash in an amount equal to $23.25 in cash, without interest (the “Merger Consideration”).
Treatment of Company Equity Awards and Employee Stock Purchase Plan
Each Vested Company RSU which is outstanding as of immediately prior to the Effective Time shall, automatically and without any required action on the part of Parent, Merger Subsidiary, the Company, or the holder thereof, be cancelled, with the former holder of such cancelled Vested Company RSU becoming entitled to receive for each share of Company Common Stock subject to such Vested Company RSU, an amount in cash, without interest and subject to deduction for any required withholding Tax, equal to the Merger Consideration. Parent will cause the Surviving Corporation to pay the Merger Consideration for each Vested Unit, without interest and subject to deduction for any required withholding Tax, on or promptly following the Closing Date to the former holder of the cancelled Vested Company RSU through its payroll system, payroll provider or accounts payable.
Each Unvested Company RSU that is outstanding as of immediately prior to the Effective Time shall, automatically and without any required action on the part of Parent, Merger Subsidiary, the Company, or the holder thereof, be cancelled and converted into the contingent right to receive for each share of Company Common Stock subject to such Unvested Company RSU, an amount in cash, without interest and subject to deduction for any required withholding Tax, equal to the Merger Consideration (collectively, the “Cash Replacement RSU Amounts”). The right to receive the Cash Replacement RSU Amounts with respect to such Unvested Company RSUs shall otherwise remain subject to the same vesting and settlement and other terms and conditions as were applicable to the Unvested Company RSUs for which they were exchanged immediately prior to the Effective Time (except for terms rendered inoperative or which become inapplicable by reason of the Merger or the other Transactions or for such other administrative or ministerial changes as in the reasonable and good faith determination of Parent are appropriate to conform the administration of the Cash Replacement RSU Amounts). Subject to the holder’s continued service with Parent and its Affiliates (including the Surviving Corporation and its Subsidiaries) through the applicable vesting dates or earlier satisfaction of the applicable vesting conditions for such Unvested Company RSUs, amounts in respect of the Cash Replacement RSU Amounts will vest and Parent will cause the Surviving Corporation to pay such amounts to such holder on the applicable Settlement Date.
Each Company MSU that is an Earned Unit outstanding as of immediately prior to the Effective Time shall, automatically and without any required action on the part of Parent, Merger Subsidiary, the Company, or any holder thereof, be cancelled and converted into the right to receive an amount in cash, without interest and subject to
deduction for any required withholding Tax, equal to the product of (i) the Merger Consideration multiplied by (ii) the applicable number of shares of Company Common Stock subject to such Earned Units as of immediately prior to the Effective Time. With respect to each such Earned Unit that is an Accelerated Unit, Parent shall cause the Surviving Corporation to pay the Merger Consideration for each such Accelerated Unit, without interest thereon and subject to deduction for any required withholding Tax, or promptly following the Closing Date through its payroll system, payroll provider or accounts payable. With respect to each such Earned Unit that is a Vested Earned Unit that has a Settlement Date that follows the Closing Date, Parent will cause the Surviving Corporation to pay the Merger Consideration for each such Vested Earned Unit, without interest and subject to deduction for any required withholding Tax to such holder on its applicable Settlement Date through its payroll system, payroll provider or accounts payable. The right to receive the Merger Consideration with respect to any Earned Units that are Unvested Earned Units as of immediately prior to the Effective Time (such consideration, the “Cash Replacement MSU Amounts”) shall otherwise remain subject to the same vesting, settlement and other terms and conditions as were applicable to such Unvested Earned Units for which they were exchanged immediately prior to the Effective Time (except for terms rendered inoperative or which become inapplicable by reason of the Merger or the other Transactions or for such other administrative or ministerial changes as in the reasonable and good faith determination of Parent are appropriate to conform the administration of the Cash Replacement MSU Amounts). Subject to the holder’s continued service with Parent and its Affiliates (including the Surviving Corporation and its Subsidiaries) through the applicable Settlement Date for the Cash Replacement MSU Amounts, Parent will cause the Surviving Corporation to pay for the Cash Replacement MSU Amounts to such holder on the applicable Settlement Date through its payroll system, payroll provider or accounts payable. At the Effective Time, and without any action on the part of Parent, Merger Subsidiary, the Company or any holder of Company MSUs, each Company MSU that is not and has not become an Earned Unit as of immediately prior to the Effective Time shall be automatically cancelled without payment of any consideration.
As soon as practicable following the Agreement Date, and in any event prior to the Effective Time, the Board shall adopt such resolutions and take such other necessary actions to provide that (i) with respect to any outstanding Offering Period(s) under the Company ESPP as of the Agreement Date, no participant in the Company ESPP may increase the percentage amount of his or her payroll deduction election or contribution rate in effect on the Agreement Date for such Offering Period or make any separate non-payroll contributions to the Company ESPP on or following the Agreement Date and no new participants may participate in such Offering Period and such Offering Period shall not be extended beyond its current end date; (ii) no new participants will commence participation in the Company ESPP; (iii) no new Offering Period will be authorized or commenced under the Company ESPP on or after the Agreement Date; (iv) any such Offering Period under the Company ESPP that does not end prior to the Effective Time will terminate and a Purchase Date (as such term is defined in the Company ESPP) will occur under the Company ESPP no later than five (5) business days prior to the day on which the Effective Time occurs (the “Final Exercise Date”), in which case any shares of Company Common Stock purchased pursuant to such Offering Period shall be treated the same as all other shares of Company Common Stock, and will be cancelled at the Effective Time and converted into the right to receive the Merger Consideration in accordance with the terms of the Merger Agreement; and (v) immediately prior to, and subject to the occurrence of the Effective Time, the Company ESPP will terminate and no further rights shall be granted or exercised under the Company ESPP thereafter. On the day following the Final Exercise Date, any funds credited as of such date under the Company ESPP that are not used to purchase shares of Company Common Stock on the Final Exercise Date within the associated accumulated payroll withholding account for each participant under the Company ESPP shall be refunded to the applicable participant in accordance with the terms of the Company ESPP.
Representations, Warranties and Covenants
The Company has made customary representations and warranties in the Merger Agreement, including, among others, covenants to use commercially reasonable efforts to (a) conduct its business in the ordinary course in all material respects during the interim period between the execution of the Merger Agreement and the consummation of the Merger and (b) preserve intact in all material respects its respective current business organizations, keep available the services of its respective key employees and maintain its respective relations and goodwill with the Persons having material business relationships with the Company or the Company Subsidiaries. The Company has also agreed not to engage in certain specified actions during that period unless (i) expressly required or permitted by the Merger Agreement, (ii) required by applicable law, (iii) disclosed in the disclosure schedules delivered by the Company to Parent concurrently with execution of the Merger Agreement or (iv) consented to in writing in advance by Parent.
No Shop
The Merger Agreement provides for customary “no-shop” restrictions under which the Company and its representatives are generally prohibited from (a) soliciting Acquisition Proposals from third parties, (b) participating in any discussions, communications or negotiations with third parties regarding Acquisition Proposals, (c) providing any person with information with the intent to encourage or facilitate an Acquisition Proposal or (d) approving or entering into any letter of intent or similar contract relating to an Acquisition Proposal. The Company has further agreed to cease and cause to be terminated any existing discussions or negotiations, if any, with regard to alternative acquisition proposals.
Closing Conditions
Consummation of the Merger is subject to customary closing conditions, including, without limitation, the absence of certain legal restraints, the expiration or termination of the required waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, or any other applicable Antitrust Law, and approval by the holders of a majority of the voting power of the outstanding shares of Company Common Stock entitled to vote on the Merger.
Consummation of the Merger by Parent and Merger Subsidiary is further subject to satisfaction of customary closing conditions on the part of the Company, including, without limitation, the Company having performed, or complied with, in all material respects its agreements, covenants and other obligations required to be performed or complied with by the Merger Agreement at or prior to the Closing, the representations and warranties of the Company being true and correct (subject in certain instances to materiality qualifiers), and no Company Material Adverse Effect.
Consummation of the Merger by the Company is further subject to satisfaction of customary closing conditions on the part of Parent and the Merger Subsidiary, including, without limitation, Parent and Merger Subsidiary having performed, or complied with, in all material respects all of their respective agreements, covenants and obligations required to be performed or complied with by each of them under the Merger Agreement at or prior to the Closing, the representations and warranties of Parent and Merger Subsidiary being true and correct.
Termination
The Merger Agreement contains certain termination rights for the Company and Parent. Upon termination of the Merger Agreement under specified circumstances, the Company will be required to pay Parent a termination fee of approximately $39.6 million. Among other termination rights, and subject to certain limitations, (i) either the Company or Parent may terminate the Merger Agreement if the Merger is not consummated by September 22, 2026 and (ii) the Company and Parent may mutually agree to terminate the Merger Agreement.
Financing Commitment
Parent and Merger Subsidiary have secured committed financing for the Transactions, consisting of equity to be provided by that certain investment fund affiliated with TB, on the terms and subject to the conditions set forth in the equity commitment letter provided by such fund, the aggregate proceeds of which will be sufficient for Parent to (i) pay the aggregate Merger Consideration payable on or promptly following the Closing Date, (ii) consummate the Merger and pay all related fees and expenses of the Company, Parent and Merger Subsidiary required to be paid in connection with the Closing, and (iii) make any payments and/or settle any conversions required to be made at or after the Closing in respect of the Company’s 2.250% Convertible Senior Notes Due 2027 and the Company’s 2.50% Convertible Senior Notes Due 2030 (collectively, the “Convertible Notes”), as a result of the Transactions and to repurchase the Convertible Notes.
Upon termination of the Merger Agreement under specified circumstances, the Company will be able to seek monetary damages from Parent under the equity commitment letter, up to a cap of $97.5 million.
Description of Merger Agreement Not Complete
The foregoing description of the Merger Agreement and the Transactions contemplated thereby does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text of the Merger Agreement, which is filed as Exhibit 2.1 to this Current Report on Form 8-K and incorporated herein by reference.
The Merger Agreement and the above description have been included to provide investors and security holders with information regarding the terms of the Merger Agreement. They are not intended to provide any other factual information about the Company, Parent or Merger Subsidiary. The representations, warranties, covenants and other agreements contained in the Merger Agreement were made only for purposes of that agreement and as of specific dates; were solely for the benefit of the parties to the Merger Agreement; and may be subject to limitations agreed upon by the parties, including being qualified and modified by confidential disclosures made by each contracting party to the other for the purposes of allocating contractual risk between them. Investors should be aware that the representations, warranties, covenants and other agreements or any description thereof may not reflect the actual state of facts or condition of the Company, Parent or Merger Subsidiary. Moreover, information concerning the subject matter of the representations, warranties, covenants and other agreements may change after the date of the Merger Agreement. Further, investors should read the Merger Agreement not in isolation, but only in conjunction with the other information that the Company includes in reports, statements and other filings it makes with the Securities and Exchange Commission (the “SEC”).
Forward-looking statements
This Current Report on Form 8-K contains not only historical information, but also forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s expectations or beliefs concerning future events, including the timing of the proposed Transaction and other information relating to the proposed Transaction. Forward-looking statements include information concerning possible or assumed future results of operations of the Company, the expected completion and timing of the proposed Transaction and other information relating to the proposed Transaction. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “intends,” “forecasts,” “should,” “estimates,” “contemplate,” “future,” “goal,” “potential,” “predict,” “project,” “projection,” “may,” “will,” “could,” “should,” “would,” “assuming” and similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the Company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties and other factors beyond the Company’s control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. Those following important factors and uncertainties, among others, could cause actual results to differ materially from those described in the forward-looking statements: (i) the risk that the Transactions may not be completed in a timely manner or at all, which may adversely affect the Company’s business and the price of the Common Stock of the Company, (ii) the failure to satisfy the conditions to the consummation of the Transactions, including the adoption of the Merger Agreement by the stockholders of the Company and the receipt of regulatory approvals from various governmental entities (including any conditions, limitations or restrictions placed on these approvals) and the risk that one or more governmental entities may deny approval, (iii) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement, (iv) the risk that the Merger Agreement may be terminated in circumstances that require the Company to pay a termination fee; (v) the effect of the announcement or pendency of the Transactions on the Company’s business relationships, operating results and business generally, (vi) risks that the proposed Transaction disrupts current plans and operations, (vii) risks related to diverting management’s attention from the Company’s ongoing business operations, (viii) the outcome of any legal proceedings that may be instituted against the Company related to the Merger Agreement or the Transaction, (ix) the Company’s ability to retain, hire and integrate skilled personnel including the Company’s senior management team and maintain relationships with key business partners and customers, and others with whom it does business, in light of the proposed Transactions, (x) unexpected costs, charges or expenses resulting from the proposed Transactions; (xi) the impact of adverse general and industry-specific economic and market conditions, (xii) risks caused by delays in upturns or downturns being reflected in the Company’s financial position and results of operations, (xiii) risks that the benefits of the Merger are not realized when and as expected, (xiv) uncertainty as to timing of completion of the proposed Merger, and (xv) other factors described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2024, the Company’s subsequent Quarterly Reports on Form 10-Q, and in other reports and filings with the SEC. Forward-looking statements speak only as of the date of this communication or the date of any document incorporated by reference in this document. The Company cautions you that the important factors referenced above may not contain all of the factors that are important to you. In addition, the Company cannot assure you that the Company will realize the results or developments expected or anticipated or, even if substantially realized, that they will result in the consequences or affect the Company or the Company’s operations in the way the Company expects. The forward-looking statements included in this Current Report on Form 8-K are made only as of the date hereof. Except as required by applicable law or regulation, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Additional Information About the Acquisition and Where to Find It
This Current Report on Form 8-K is being made in respect of the proposed Transaction involving the Company, with Portofino Parent, LLC, a Delaware limited liability company, and Portofino Merger Sub, Inc., a Delaware corporation and wholly owned direct subsidiary of Parent. The Company expects to seek, and intends to file with the SEC a proxy statement and other relevant documents in connection with a special meeting of the Company’s stockholders for purposes of obtaining, stockholder approval of the proposed Transaction. The Company may also file other relevant documents with the SEC regarding the proposed Transaction. This communication is not a substitute for the proxy statement or any other document that the Company may file with the SEC. The definitive proxy statement (when available) will be sent or given to the stockholders of the Company and will contain important information about the proposed Transaction and related matters. INVESTORS AND STOCKHOLDERS OF THE COMPANY ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC BY THE COMPANY, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY AND THE PROPOSED TRANSACTION. Investors will be able to obtain a free copy of the proxy statement and other documents containing important information about the Company and the proposed Transaction, once such documents are filed by the Company with the SEC at the SEC’s website at www.sec.gov or from the Company at its website at https://ir.pros.com/.
Participants in the Solicitation
The Company, and certain of its directors and executive officers, may be deemed to be participants in the solicitation of proxies in connection with the proposed Transaction. Information about the Company’s directors and executive officers is set forth in (i) the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, including under the headings “Item 10. Directors, Executive Officers and Corporate Governance”, “Item 11. Executive Compensation”, “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” and “Item 13. Certain Relationships and Related Transactions, and Director Independence”, which was filed with the SEC on February 12, 2025, (ii) the Company’s Definitive Proxy Statement for its 2025 annual meeting of stockholders, which was filed with the SEC on March 28, 2025, as supplemented on April 7, 2025, under the headings “Directors”, “Director Compensation”, “Executive Officers”, “Compensation Discussion and Analysis”, “Executive Compensation”, “Security Ownership”, and “Related Party Transactions”, (iii) to the extent holdings of Company securities by its directors or executive officers have changed since the amounts set forth in the Company’s proxy statement for its 2025 annual meeting of stockholders, such changes have been or will be reflected on Forms 3, 4 and 5, filed with the SEC, (iv) the Company’s Current Report on Form 8-K, which was filed on May 1, 2025, and (v) and in subsequently filed Current Reports on Form 8-K and Quarterly Reports on Form 10-Q. Other information regarding the participants in the solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be set forth in the Company’s definitive proxy statement and other relevant materials to be filed with the SEC regarding the proposed Transaction when such materials become available. Investors should read the proxy statement carefully when it becomes available before making any voting or investment decisions. Copies of the documents filed with the SEC by the Company will be available free of charge through the website maintained by the SEC at sec.gov and the Company’s website at https://ir.pros.com/.
No Offer
No person has commenced soliciting proxies in connection with the proposed Transaction referenced in this Current Report on Form 8-K, and this Current Report on Form 8-K is neither an offer to purchase nor a solicitation of an offer to sell securities.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| Exhibit No. |
Description | |
| 2.1* | Agreement and Plan of Merger | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
| * | The disclosure schedules to and certain provisions of this exhibit have been omitted pursuant to Item 601(b)(2)(ii) of Regulation S-K as they contain information that is both not material and of the type that the registrant treats as private or confidential. The registrant agrees to supplementally furnish an unredacted copy of this exhibit, including any schedule hereto, to the SEC upon its request; however, the registrant may request confidential treatment of such unredacted copy. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| PROS HOLDINGS, INC. | ||||||
| Date: September 22, 2025 | By: | /s/ Damian W. Olthoff | ||||
| Name: | Damian W. Olthoff | |||||
| Title: | General Counsel and Secretary | |||||
FAQ
What is the acquisition price per share for PRO (PROS Holdings, Inc.)?
Will PRO remain a public company after the merger?
How are MSUs (performance/service awards) treated in the transaction?
What happens to the Company ESPP?
Does the filing describe treatment of convertible debt?
What are the main risks to closing the transaction?
