Zhitong Finance and Economics learned that in the ** report on the electronic signature and digital transaction solution provider Docusign Inc (Docu.US) after considering the ** plan, the company's stock price once recorded the biggest increase in a year, and finally the US stock ** rose more than 12% as of Friday. * Citing unnamed people familiar with the matter, the company is working with investment advisors to explore the possibility of a leveraged buyout, but talks are still in the early stages. As of Friday**, Docusign had a total market capitalization of about $12.8 billion. "In accordance with company rules, Docusign does not comment on market rumors or speculation," a company spokesperson said.
As one of the darlings of the COVID era, Docusign's sales and share price soared in 2020 as companies around the world almost needed to digitally process more documents with remote employees. Docusign's primary business is to provide digital products for electronic signatures and contractual agreements, which were particularly popular during the global pandemic in 2020, when global companies needed to process documents more digitally to accommodate employees working remotelyIn addition, DocuSign simplifies and accelerates the processing of various commercial agreements by enabling users to sign and manage contracts digitally.
Anurag Rana, an analyst at Bloomberg Intelligence, said earlier this month that the company's revenue growth expectations have slowed to single-digit levels and may even enter negative territory, and that the slowdown in economic growth in 2024 could delay any kind of performance improvement.
Docusign, which went public in 2018, has recently faced the face of Adobe (Adbe.), a software services giant that offers popular products such as PhotoshopUS), Adobe's file business processing products have a growing share of the market, so as the pandemic dividend is a thing of the past and competition is intensifying, investors have lost interest in the seemingly unprofitable Docusign, and its valuation has also suffered.
Back in 2022, the company appointed former Google executive Allan Thygesen as CEO to lead Docusign's next chapter of growth. However, according to a report in June, the company's performance is difficult to return to the strong growth curve, and the company has also experienced at least two layoffs this year.
Mark R. Murphy, an analyst at JPMorgan Chase & Co., a major Wall Street bankMurphy wrote earlier this month that while the online services market for documents remains vast, Docusign's outlook may remain challenging in the near term as the company struggles to find a sustainable growth trajectory in the post-COVID era, while also navigating key leadership changes and sales organization restructuring.
The company's share price jumped 15% to 64 on Friday following the potential newsAt $76, this data is the biggest one-day increase since December 2022. Shares of the San Francisco-based company were up more than 12% as of Friday**.
Lana, an analyst at Bloomberg Intelligence, said the most likely acquisition of Docusign would be by large private equity-type buyers. He also highlighted that Salesforce Inc., a giant in the American software industryor Microsoft Corp) may be logical potential acquirers, but they may be too busy with other AI-related potential acquisitions to consider the deal in the short term.