Filing Flows › Q2 Holdings (QTWO) › Takeover & LBO
Is Q2 Holdings (QTWO) a takeover target?
A leveraged buyout at today's price plus 30% ($90.21 a share) would return about 2% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 3.5% of companies with its figures were bought within a year (0.71× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $90.21 | today's $69.39 plus 30% |
| × shares | 63.5 million | |
| = Equity value | $5.7B | |
| + Debt refinanced | $0 | |
| − Cash | $106M | |
| = Enterprise value | $5.6B | 35.6× EBITDA of $158M |
| Fees | $112M | 2% of the price |
| New debt | $868M | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $4.9B | 85% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $940M | $170M | $66.4M | $77.0M | $791M |
| Year 2 | $1.0B | $182M | $60.5M | $92.4M | $698M |
| Year 3 | $1.1B | $192M | $53.4M | $108M | $591M |
| Year 4 | $1.1B | $200M | $45.2M | $123M | $468M |
| Year 5 | $1.1B | $206M | $35.8M | $137M | $330M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 27.3× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $5.6B | |
| − Debt left | $330M | |
| = Buyer's equity | $5.3B | |
| Money multiple | 1.09× | on $4.9B put in |
| Buyer's yearly return (IRR) | 1.7% |
Price against return
What the buyer makes at other premiums over today's $69.39.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $76.33 | 5.9% |
| 20% | $83.27 | 3.7% |
| 30% | $90.21 | 1.7% |
| 40% | $97.15 | −0.1% |
| 50% | $104.09 | −1.7% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $870M | |
| EBITDA, last 12 months | $158M | 18.1% of revenue |
| Depreciation and amortization | $50.0M | |
| Capital spending | $13.0M | |
| Debt | $0 | |
| Cash | $106M | |
| Share price | $69.39 | on Oct 23, 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 12% 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 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Q2 Holdings would cost about $90.21 a share, $5.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $77.72 | $4.9B |
| Median | 30% | $90.21 | $5.7B |
| High end (a quarter paid more) | 31% | $90.90 | $5.8B |
The odds, from history
Historically 3.5% of companies with its figures were bought within a year (0.71× 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.
Q2 Holdings' latest quarter
Q2 Holdings, Q3 2026: revenue $226M (+12% year over year), operating margin 15.0%, net earnings $33.2M, operating cash flow $64.7M. The chart follows the revenue to costs, profit and cash.
Questions
Is Q2 Holdings being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Q2 Holdings?
A leveraged buyout at today's price plus 30% ($90.21 a share) would return about 2% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Q2 Holdings cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Q2 Holdings would cost about $90.21 a share, $5.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.