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Filing Flows › Verra Mobility (VRRM) › Takeover & LBO

Is Verra Mobility (VRRM) a takeover target?

A leveraged buyout at today's price plus 30% ($3.80 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $0.59 a share (−80% against today's $2.92). Historically 5.6% of companies with its figures were bought within a year (1.12× the average).

Share price$2.92
Offer at +30%$3.80
Buyer's IRR0%
Most for 20%$0.59
EV / EBITDA5.9×
Buyout debt4.2× EBITDA

The buyout, step by step

EntryAmountHow
Offer price a share$3.80today's $2.92 plus 30%
× shares152.1 million
= Equity value$577M
+ Debt refinanced$1.0B
− Cash$54.8M
= Enterprise value$1.6B6.4× EBITDA of $243M
Fees$31.1M2% of the price
New debt$1.0B4.2× EBITDA at 7.65% a year; the limit that binds: 65% of the price
Buyer's own money$576M36% of the cost

5 years under the buyer

Verra Mobility: buyout debt left, year by yearVerra Mobility: buyout debt left, year by year$1.0BEntry$983MYear 1$953MYear 2$921MYear 3$887MYear 4$848MYear 5
Free cash flow after interest and tax repays the debt; a shortfall is borrowed.
YearRevenueEBITDAInterestFree cash flowDebt left
Year 1$111M$236M$77.4M$29.7M$983M
Year 2$109M$232M$75.2M$30.0M$953M
Year 3$109M$232M$72.9M$31.6M$921M
Year 4$111M$235M$70.4M$34.4M$887M
Year 5$114M$243M$67.8M$38.6M$848M

The exit and the buyer's return

ExitAmount
Exit multiple5.9× EBITDAtoday's trading multiple, before any premium
Enterprise value at exit$1.4B
− Debt left$848M
= Buyer's equity$575M
Money multiple1.00×on $576M put in
Buyer's yearly return (IRR)−0.1%

Price against return

What the buyer makes at other premiums over today's $2.92; the IRR reaches 20% at $0.59 a share.

PremiumPrice a shareBuyer's IRR
10%$3.213.6%
20%$3.501.8%
30%$3.80−0.1%
40%$4.09−2.0%
50%$4.38−3.9%

The figures used

FigureAmount
Revenue, last 12 months$114M
EBITDA, last 12 months$243M212.8% of revenue
Depreciation and amortization$115M
Capital spending$118M
Debt$1.0B
Cash$54.8M
Share price$2.92on Oct 12, 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 -3.0% 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 30% 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, Verra Mobility would cost about $4.09 a share, $622M for all its shares.

Premium%Price a shareAll shares
Low end (a quarter of deals paid less)14.7%$3.35$509M
Median40%$4.09$622M
High end (a quarter paid more)60.2%$4.68$712M

The odds, from history

Historically 5.6% of companies with its figures were bought within a year (1.12× the average). Its figures put it in decile 7 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.

Verra Mobility's latest quarter

Verra Mobility, Q3 2026: revenue $259M (-1% year over year), operating margin 25.3%, net earnings $40.4M, operating cash flow $115M. The chart follows the revenue to costs, profit and cash.

Questions

Is Verra Mobility being acquired?

No headline, 8-K or 13D about a sale is on file in the last year.

Could private equity buy Verra Mobility?

A leveraged buyout at today's price plus 30% ($3.80 a share) would return a loss of about 0% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $0.59 a share (−80% against today's $2.92).

What would a takeover of Verra Mobility 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, Verra Mobility would cost about $4.09 a share, $622M for all its shares.

Open the interactive view →

Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.