Filing Flows › RingCentral (RNG) › Takeover & LBO
Is RingCentral (RNG) a takeover target?
A leveraged buyout at today's price plus 30% ($105.85 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $56.18 a share (−31% against today's $81.42). Historically 3.8% of companies with its figures were bought within a year (0.76× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $105.85 | today's $81.42 plus 30% |
| × shares | 87.7 million | |
| = Equity value | $9.3B | |
| + Debt refinanced | $1.0B | |
| − Cash | $110M | |
| = Enterprise value | $10.2B | 24.0× EBITDA of $423M |
| Fees | $204M | 2% of the price |
| New debt | $2.3B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $8.1B | 78% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.8B | $447M | $178M | $217M | $2.1B |
| Year 2 | $2.9B | $468M | $162M | $251M | $1.9B |
| Year 3 | $3.0B | $488M | $142M | $286M | $1.6B |
| Year 4 | $3.1B | $506M | $120M | $322M | $1.3B |
| Year 5 | $3.2B | $521M | $95.8M | $359M | $894M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 19.0× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $9.9B | |
| − Debt left | $894M | |
| = Buyer's equity | $9.0B | |
| Money multiple | 1.12× | on $8.1B put in |
| Buyer's yearly return (IRR) | 2.2% |
Price against return
What the buyer makes at other premiums over today's $81.42; the IRR reaches 20% at $56.18 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $89.56 | 6.4% |
| 20% | $97.70 | 4.2% |
| 30% | $105.85 | 2.2% |
| 40% | $113.99 | 0.5% |
| 50% | $122.13 | −1.1% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.6B | |
| EBITDA, last 12 months | $423M | 16.2% of revenue |
| Depreciation and amortization | $227M | |
| Capital spending | $32.1M | |
| Debt | $1.0B | |
| Cash | $110M | |
| Share price | $81.42 | 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 5.5% 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, RingCentral would cost about $105.85 a share, $9.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $91.19 | $8.0B |
| Median | 30% | $105.85 | $9.3B |
| High end (a quarter paid more) | 31% | $106.66 | $9.4B |
The odds, from history
Historically 3.8% of companies with its figures were bought within a year (0.76× the average). Its figures put it in decile 4 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.
RingCentral's latest quarter
RingCentral, Q3 2026: revenue $676M (+6% year over year), operating margin 8.0%, net earnings $570M, operating cash flow $180M. The chart follows the revenue to costs, profit and cash.
Questions
Is RingCentral being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy RingCentral?
A leveraged buyout at today's price plus 30% ($105.85 a share) would return about 2% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $56.18 a share (−31% against today's $81.42).
What would a takeover of RingCentral 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, RingCentral would cost about $105.85 a share, $9.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.