Goldman Sachs in spreadsheet mix-up

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When Vista Equity Partners last month decided to acquire Tibco Software, an enterprise computing company, it agreed to pay $4.3bn, making the deal the largest technology buyout of the year.

The New York Times reports that it turns out Vista will only wind up paying about $4.2 billion for Tibco.

The $100 million gap is a result of a mistake made by Goldman Sachs, the financial adviser to Tibco.

According to a filing with the Securities and Exchange Commission, a mix-up with spreadsheets during the final days of negotiations led Goldman Sachs to misrepresent to Vista the number of outstanding shares in Tibco.

Vista made its bid based on the number of shares Goldman Sachs said were outstanding in the company, offering $4.3 billion, or about $24 a share, and beating out other bidders.

But it turns out Goldman Sachs had double-counted some shares as both common stock and equity awards. That inflated share count was used in Goldman’s financial analysis of the deal, and used to calculate the headline number put out in the press release.

Hit the link below to access the complete New York Times article:

An Oops for Goldman Sachs in Its Advice on Vista-Tibco Merger

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