Shares of DocuSign Inc. rose 12.4 percent after news that the company is exploring a sale. The potential sale would be one of the largest Leveraged buyouts mean in the technology world.

Today’s diary reports that a sale of electronic signature services company DocuSign is on the table after a significant slowdown in growth over the past two years. DocuSign shares received a strong boost following this news. Or sales in the form of a Leveraged buyout It is not yet clear whether it will actually take place.

One of the largest leveraged buyouts

DocuSign is an electronic signature solution currently used by 1 billion employees in 1.4 million organizations. It also offers a range of products and a platform for drafting contracts.

Wall Street Journal reported that the potential deal would be structured as follows Leveraged buyoutThis is an acquisition in which the buyer takes on debt and uses the acquired company’s assets as collateral to finance the purchase.

Financial position

DocuSign launched a restructuring initiative last year that resulted in the company laying off about 700 employees, or nine percent of its workforce, in September 2022. A further 700 jobs were cut at the start of this year. Despite significant staff cuts, the company has not seen any improvement in its financials.

However, DocuSign’s market capitalization is still twice what the software maker was worth at the time of its IPO in 2018. The stock sale raised the company $629 million at a valuation of $6 billion. DocuSign had a market cap of $11 billion before news of the possible sale was made public.