DocuSign Inc., once hailed as a pandemic success story, is reportedly exploring the possibility of a sale. According to the Wall Street Journal, the e-signature company is working with advisers to evaluate potential deals, with a valuation exceeding $11 billion. If successful, this sale could be one of the largest leveraged buyouts in recent times, attracting interest from private-equity firms and technology companies.
Following the report, DocuSign’s stock surged by more than 11% in afternoon trading on Friday, reflecting market optimism regarding the potential deal.
During the pandemic, DocuSign emerged as a symbol of adaptation as businesses sought digital solutions for acquiring signatures on contracts, mortgages, and other documents. However, as offices resume in-person activities, the company has faced challenges in maintaining its earlier growth rates. In its recent earnings report, management acknowledged the difficult macroeconomic environment that DocuSign currently operates in.
Although DocuSign shares reached a high point of over $310 in September 2021, they closed near $56 on Thursday. However, Friday’s intraday rally saw the stock trading just below $64.
The company has yet to respond to inquiries regarding the reported exploration of a potential sale.