Filing Flows › Eplus (PLUS) › Takeover & LBO
Is Eplus (PLUS) a takeover target?
A leveraged buyout at today's price plus 30% ($120.78 a share) would return about 4% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 3.4% of companies with its figures were bought within a year (0.68× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $120.78 | today's $92.91 plus 30% |
| × shares | 25.9 million | |
| = Equity value | $3.1B | |
| + Debt refinanced | $0 | |
| − Cash | $381M | |
| = Enterprise value | $2.7B | 13.6× EBITDA of $202M |
| Fees | $55.0M | 2% of the price |
| New debt | $1.1B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $1.7B | 60% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.7B | $218M | $84.8M | $77.5M | $1.0B |
| Year 2 | $2.9B | $232M | $78.9M | $94.3M | $937M |
| Year 3 | $3.1B | $245M | $71.7M | $111M | $826M |
| Year 4 | $3.2B | $256M | $63.2M | $128M | $698M |
| Year 5 | $3.3B | $263M | $53.4M | $144M | $555M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 10.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $2.6B | |
| − Debt left | $555M | |
| = Buyer's equity | $2.1B | |
| Money multiple | 1.23× | on $1.7B put in |
| Buyer's yearly return (IRR) | 4.3% |
Price against return
What the buyer makes at other premiums over today's $92.91.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $102.20 | 11.7% |
| 20% | $111.49 | 7.6% |
| 30% | $120.78 | 4.3% |
| 40% | $130.07 | 1.5% |
| 50% | $139.37 | −0.9% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.5B | |
| EBITDA, last 12 months | $202M | 8.0% of revenue |
| Depreciation and amortization | $25.2M | |
| Capital spending | $5.0M | |
| Debt | $0 | |
| Cash | $381M | |
| Share price | $92.91 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 28% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Eplus would cost about $130.07 a share, $3.4B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 14.7% | $106.57 | $2.8B |
| Median | 40% | $130.07 | $3.4B |
| High end (a quarter paid more) | 60.2% | $148.84 | $3.9B |
The odds, from history
Historically 3.4% of companies with its figures were bought within a year (0.68× the average). Its figures put it in decile 3 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Eplus' latest quarter
Eplus, Q2 FY27: revenue $668M (+10% year over year), operating margin 8.5%, net earnings $40.4M, operating cash flow −$57.4M. The chart follows the revenue to costs, profit and cash.
Questions
Is Eplus being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Eplus?
A leveraged buyout at today's price plus 30% ($120.78 a share) would return about 4% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Eplus cost?
Takeovers in its sector paid a median premium of 40% over the share price before the deal (the middle half 14.7% to 60.2%), according to the 20 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Eplus would cost about $130.07 a share, $3.4B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.