Thoma Bravo Explained

Thoma Bravo, LP
Type:Private
Location:Chicago, Illinois
Locations:5
Industry:Private equity
Products:Investments, private equity funds, private credit funds
Aum: (2023)[1]
Num Employees:212 (2023)[2]

Thoma Bravo, LP, is an American private equity and growth capital firm based in Chicago.[3] It is known for being particularly active in acquiring enterprise software companies[4] and has over $130billion in assets under management .[5]

It is the successor to the firm Golder Thoma & Co., which was established in 1980 by Stanley Golder and Carl Thoma. Thoma Bravo is led by managing partners Seth Boro, Orlando Bravo, Scott Crabill, Lee Mitchell, Holden Spaht and Carl Thoma.[6] It has additional offices in San Francisco, New York City, London and Miami.[7]

The company focuses on the application, infrastructure and cybersecurity software and technology-enabled business service sectors, and uses a "consolidation" or "buy and build" investment strategy.[8] [9]

Investments

, the company had completed over 440 software deals[10] and as of 2020, oversaw a portfolio of over 70 software companies.[11] [12]

Software investments

Thoma Cressey Equity Partners began investing in the enterprise software sector in 2002 with the acquisition of Prophet21, a provider of software for durable goods distributors.[13]

In 2014, the company acquired Riverbed Technology for $3.6 billion.[14] Riverbed later filed for Chapter 11 Bankruptcy in December 2021.[15]

After the purchase of edtech company Instructure in 2020, the purchase was accused of being "rushed" and "riddled by conflicts of interest" by a large shareholder at the time.[16]

In October 2021, Thoma Bravo took enterprise software company Medallia private for $6.4 billion.[17] [18]

In September 2021, Thoma Bravo completed the acquisition of Stamps.com, an e-commerce shipping service provider, for approximately $6.6 billion in cash.[19]

In March 2022, Thoma Bravo acquired the enterprise cloud software company Anaplan for $10.7 billion (€9.6bn).[20] The acquisition completed in June 2022 following Thoma Bravo cutting the takeover offer down to $10.4 billion after alleging that the company had violated the acquisition terms by overpaying new hires.[21] [22]

In August 2022, the company agreed to buy Nearmap, its first Australian acquisition, for (US$730 million).[23] it has done over 300 software deals[24] since 2003 and oversees a portfolio of over 40 software companies.

In December 2022, the company outbid Vista Equity Partners to announce its acquisition of Coupa Software for $6.15 billion in cash, and a total enterprise value of $8 billion.[25] [26]

In September 2023, Arlington Capital Partners announced it had bought Exostar, a software company headquartered in Herndon, Virginia, from Thoma Bravo for an undisclosed amount.[27]

In November 2023, the company acquired health-records software company NextGen Healthcare for a total enterprise value of $1.8 billion.[28] [29]

In March 2024, the company agreed to take Everbridge, a provider of critical event management software, private for approximately $1.8billion.[30]

Security investments

In 2018, Thoma Bravo took cloud-first security provider Barracuda Networks private for $1.6 billion. In April 2022, it sold Barracuda to KKR for about $4 billion.[31]

In January 2019, Thoma Bravo acquired Imperva for $2.1 billion.[32] In July 2023, it then sold the company to Thales Group for $3.6billion.[33]

In March 2020, Thoma Bravo completed its $3.9 billion acquisition of Sophos.[34]

On August 31, 2021, Thoma Bravo completed its $12.3 billion acquisition of Proofpoint.[35]

In 2022, Thoma Bravo made a series of security related investments.[36] In April, it announced the acquisition of identity security company SailPoint for $6.9 billion with financing from private lenders.[37] [38] In August, it agreed to buy Ping Identity for $2.8 billion in an all-cash transaction.[39] In October, it agreed to buy ForgeRock for $2.3 billion.[36]

Thoma Bravo acquired Canada-based digital investigation software maker Magnet Forensics for billion (bn) in 2023, and merged it with Grayshift, a digital forensics firm in its existing portfolio that it gained majority control the previous year.[40] [41] [42]

In April 2024, Thoma Bravo agreed to acquire Darktrace, a UK-based cybersecurity company, in a private transaction valued at $5.3 billion.[43]

Fintech investments

In May 2022, Thoma Bravo acquired Bottomline Technologies for $2.6 billion.[44]

In June 2023, Thoma Bravo agreed to divest Adenza to Nasdaq, Inc. for $10.5 billion in a cash-and-stock deal. As part of the deal, it would get a 15percent stake in Nasdaq.[45]

In July 2021, Thoma Bravo acquired Greenphire LLC[46]

In June 2021, Thoma Bravo invested $125 million into FTX.[47] [48] Following the collapse of FTX, in February 2023, Thoma Bravo, Paradigm Operations and Sequoia Capital were sued for allegedly making “materially false and misleading statements" while promoting FTX and "aided and abetted the misconduct that led to the collapse of the FTX Entities.”[49] [50]

History

In 1980 Stanley Golder and Carl Thoma established Golder Thoma & Co,[51] a company that has been credited as creating the "consolidation" or "buy and build" investment strategy.[52] [53] In 1984, Bryan Cressey was recruited to join the firm from First Chicago, and the firm's name was changed to Golder Thoma Cressey. With the promotion of Bruce Rauner to partner, it became Golder, Thoma, Cressey, Rauner, Inc. (GTCR).[54]

In 1998, the firm split into two firms: GTCR Golder Rauner and Thoma Cressey Equity Partners.[55]

In 2008, Thoma Cressey Bravo was renamed Thoma Bravo after Bryan Cressey left the company.[56] [57]

The firm closed its 12th fund in September 2016, with $7.6 billion.[58] Thoma Bravo raised $12.6 billion for its 13th fund, which was announced in January 2019.[59] It raised $17.8billion for its 14th fund which launched in October 2020.[60] In December 2022, it raised $24.3billion for its 15th fund, which Preqin called the largest tech-focused buyout fund raised by an independent private-equity firm.

In 2017, the firm launched a private credit platform, which focuses on investments in software and technology companies.[61]

The company moved its operations to Miami, Florida at the end of 2020.[62]

In June 2023, Private Equity International placed Thoma Bravo fourth on the PEI 300 ranking of the largest private equity firms.[63]

In February 2024, Fortune published an analysis of the top ten private equity investors in tech of 2021 by amount invested. Thoma Bravo made the highest number of acquisitions valued at over $58billion that year, at a time when tech valuations peaked before the market correction in 2022. Two of Thoma Bravo's most recent 14th and 15th funds were among the lowest performing funds in Fortune list, posting an internal rate of return of 4% and -2% respectively, while the 13th fund saw some big exits and was among the highest on the list with 27%.[64] [65]

In June 2024, Thoma Bravo was ranked seventh on Private Equity International's PEI 300 ranking.[66] [67]

See also

Notes and References

  1. Web site: Tan. Gillian. Gould. Ryan. Thoma Bravo Targets $20 Billion for Next Buyout Fund. April 4, 2024. Bloomberg News.
  2. Form ADV. U.S. Securities and Exchange Commission. March 31, 2023. 11.
  3. News: Armental. Maria. Thoma Bravo Bags $32.4 Billion Including Largest Technology Buyout Fund. December 7, 2022. The Wall Street Journal. January 18, 2024.
  4. News: Savitz. Eric J.. He Might Be Tech's Last Bull. Here's Why the Founder of Thoma Bravo Is Still Buying. January 20, 2023. Barron's.
  5. Web site: Weil. Dan. Tennis, Anyone? A Former Star Applies Lessons From the Sport to Private Equity. September 8, 2023. Institutional Investor.
  6. Web site: Team Members Thoma Bravo . June 29, 2017 . thomabravo.com . en-US.
  7. Web site: Thoma Bravo Contact. Thoma Bravo. October 18, 2023.
  8. Web site: Thoma Bravo, LLC: Private Company Information - Bloomberg . June 29, 2017 . www.bloomberg.com.
  9. News: Shabong . Yadarisa . October 14, 2019 . Buyout firm Thoma Bravo adds Sophos to its cybersecurity chest with $3.8 billion deal . Reuters .
  10. Web site: Beltran . Luisa . July 31, 2023 . Meet the most powerful private equity investors from Blackstone, Vista Equity, and Apollo . January 18, 2024 . Fortune . en.
  11. News: Marek . Lynne . October 26, 2020 . Thoma Bravo raises $22.8 billion . Crain's Chicago Business .
  12. News: Lynn . Alex . October 13, 2020 . Performance watch: Thoma Bravo's PE funds . Private Equity International .
  13. Web site: August 17, 2005 . Thoma Cressey Equity Partners and LLR Partners Announce Sale of Prophet 21 Inc. to Activant Solutions Inc. . June 29, 2017 . www.businesswire.com . en.
  14. Web site: Thoma Bravo . Riverbed to be Acquired by Thoma Bravo for $21.00 Per Share in Cash . December 2, 2022 . www.thomabravo.com . en.
  15. News: Chutchian . Maria . December 3, 2021 . Riverbed Technology nets approval of $1bn debt-cutting plan . en . Reuters . December 2, 2022.
  16. News: Gara . Antoine . December 7, 2021 . Buyout firm Thoma Bravo goes from niche to big league . Financial Times . December 2, 2022.
  17. News: Mehta . Chavi . July 26, 2021 . Thoma Bravo to take software firm Medallia private for $6.4 bln . Reuters.
  18. News: Jain . Shweta . December 8, 2021 . Mubadala invests in US enterprise software company Medallia . The National.
  19. News: October 5, 2021 . Thoma Bravo Completes Acquisition of Stamps.com . Thoma Bravo.
  20. Web site: March 21, 2022 . Anaplan acquired by Thoma Bravo in $10.7bn deal . March 21, 2022 . www.channelweb.co.uk . en.
  21. Web site: Primack . Dan . June 22, 2022 . Thoma Bravo's big tech repricing . Axios.
  22. News: Indap . Sujeet . June 12, 2022 . Thoma Bravo seizes on pay issue to lower Anaplan buyout price . . December 2, 2022.
  23. News: Fildes . Nic . August 22, 2022 . Thoma Bravo agrees $730mn takeover of Australia mapping company . . limited.
  24. News: St. Anthony . Neal . March 23, 2021 . Thoma Bravo will buy Minneapolis-based Calabrio from KKR . Star Tribune .
  25. News: Malik . Yuvraj . December 12, 2022 . Thoma Bravo to buy Coupa Software for $6.15 bln amid tech slump . Reuters.
  26. News: Ed . Hammond . Michelle F . Davis . Scott . Deveau . December 12, 2022 . Thoma Bravo Wins Battle for Coupa in $6.2 Billion Deal . Bloomberg News . limited.
  27. Web site: Satellite Evolution Group . September 26, 2023 . Arlington Capital partners to acquire Exostar from Thoma Bravo . September 26, 2023 . Satellite Evolution . en.
  28. News: Private-equity firm Thoma Bravo to take NextGen Healthcare private . September 6, 2023 . Reuters.
  29. Web site: Thoma Bravo closes $1.8B acquisition of NextGen Healthcare. Modern Healthcare. November 10, 2023. Brock E.W. Turner. November 19, 2023.
  30. News: Thoma Bravo lifts offer price for software firm Everbridge . March 1, 2024 . Reuters.
  31. Web site: Baker . Liana . Tse . Crystal . April 12, 2022 . KKR Agrees to Buy Thoma-Backed Cybersecurity Company Barracuda . April 13, 2022 . . en.
  32. News: Baumer . Lilach . January 19, 2019 . Thoma Bravo Completes Acquisition of Imperva . Calcalist.
  33. News: Hepher . Tim . Rosemain . Mathieu . July 25, 2023 . France's Thales to buy Imperva in $3.6 bln cybersecurity deal . Reuters.
  34. Web site: Miller . Ron . December 12, 2022 . Thoma Bravo completes $3.9B Sophos acquisition . TechCrunch.
  35. Web site: 2021-08-30 . Thoma Bravo Completes Acquisition of Proofpoint Proofpoint US . 2024-02-23 . Proofpoint . en-us.
  36. Web site: Miller . Ron . October 11, 2022 . Thoma Bravo buys third identity company this year with $2.3B ForgeRock acquisition . October 11, 2022 . . en-US.
  37. Web site: Thoma Bravo to take identity security company SailPoint private for $6.9B . April 13, 2022 . TechCrunch . en-US.
  38. News: April 11, 2022 . Thoma Bravo agrees $6.9bn deal for cyber security group SailPoint . Financial Times . December 2, 2022.
  39. News: Prakash . Prarthana . August 3, 2022 . Ping Identity Surges After Thoma Bravo Deal Announced . . live . limited . https://archive.today/20220803184422/https://www.bloomberg.com/news/articles/2022-08-03/ping-identity-surges-after-thoma-bravo-bid-announced . August 3, 2022.
  40. Web site: Wiggers . Kyle . January 20, 2023 . Thoma Bravo agrees to acquire digital forensics firm Magnet Forensics for over $1B . TechCrunch.
  41. News: Thoma Bravo expands cybersecurity reach with $1.34 bln Magnet Forensics deal . January 20, 2023 . Reuters.
  42. Web site: Mandel . Charles . April 10, 2023 . Magnet Forensics to delist from TSX as $1.8 billion merger deal closes . BetaKit.
  43. Web site: Reid . Jenni . 2024-04-26 . UK tech darling Darktrace rallies 17% after agreeing $5.32 billion private equity sale to Thoma Bravo . 2024-04-26 . CNBC . en.
  44. News: Rica Dela Cruz . May 13, 2022 . Thoma Bravo completes $2.6B acquisition of Bottomline . .
  45. Web site: Nasdaq to buy Adenza for $10.5bn in US exchange operator's biggest deal . June 12, 2023 . . Gara . Antoine . Hughes . Jennifer . Paolo Mancini . Donato.
  46. Bravo . Thoma . Thoma Bravo Completes Strategic Growth Investment in Greenphire . 2024-05-25 . www.prnewswire.com . en.
  47. News: November 11, 2022 . How Sam Bankman-Fried seduced blue-chip investors . Financial Times . November 12, 2022 . November 11, 2022 . https://web.archive.org/web/20221111222804/https://www.ft.com/content/67b1899f-4b1f-4676-b264-0d19e205d64e . live .
  48. Web site: Sam Bankman-Fried's crypto empire 'was run by a gang of kids in the Bahamas' . November 12, 2022 . Fortune . en . November 12, 2022 . https://web.archive.org/web/20221112020853/https://fortune.com/2022/11/11/sam-bankman-fried-crypto-empire-ftx-alameda-run-gang-kids-bahamas-who-all-dated-each-other/ . live .
  49. News: Rosenblatt . Joel . FTX Investor Sues Sequoia Capital, Thoma Bravo, Paradigm . Bloomberg . February 15, 2023 . 4 March 2024.
  50. Web site: Katz . Michael . Sequoia Capital, Thoma Bravo, Paradigm Sued for Touting FTX . Chief Investment Officer . 2 March 2024.
  51. News: A Brief History of Private Equity - Financial Poise. July 1, 2013. Financial Poise. June 29, 2017. en-US.
  52. Web site: Company Information. www.massinvestordatabase.com. June 29, 2017.
  53. Web site: Flexera Software Awarded Illinois Venture Capital Association's 2012 Private Equity Portfolio Company of the Year. www.flexerasoftware.com. en. June 29, 2017.
  54. News: Just Who Is Bruce Rauner?. Chicago magazine. June 29, 2017. en.
  55. News: Chicago Buyout Firm to Split Into 2 Investment Groups. American Banker. June 29, 2017. en.
  56. http://findarticles.com/p/articles/mi_hb5253/is_200409/ai_n20197853 "Dealmakers' boot camp; Golder Thoma: A buyout industry proving ground"
  57. "Personality Profile: Cressey Takes Specialization To The Next Level." Buyouts, June 23, 2008
  58. Web site: Thoma Bravo Raises $7.6 Billion Fund to Pursue More Tech Deals. de la Merced. Michael J.. September 12, 2016. Deal B%k: NYTimes. June 29, 2017.
  59. News: Thoma Bravo raises $12.6billion for latest private equity fund. January 29, 2019. Reuters. March 15, 2019. en.
  60. Web site: Singh . Preeti . October 26, 2020 . Thoma Bravo Raises $22.8 Billion in Record Tech-Fundraising Haul . January 17, 2024 . Wall Street Journal.
  61. News: Blumenthal . Robin . October 26, 2020 . Thoma Bravo Names Thym to Lead Credit Platforms . subscription . January 17, 2024 . Private Debt Investor.
  62. Web site: Bravo Family Foundation dona $250,000 para apoyar a Surfside . CB en Español . June 28, 2021 . es . July 9, 2021.
  63. Web site: June 1, 2023 . PEI 300 The Largest Private Equity Firms in the World . June 2, 2023 . Private Equity International . en-GB.
  64. Web site: Beltran . Luisa . From KKR to Thoma Bravo: how 10 top private equity firms are performing as sky-high tech prices from 2021 fall back to earth . Fortune . 4 March 2024.
  65. Web site: Beltran . Luisa . Private equity's Class of 2021 faces moment of truth: how tech bets from the bubble market are panning out . Yahoo! Finance . February 28, 2024 . Fortune . 4 March 2024.
  66. Web site: Beer . Helen de . 2024-06-03 . Blackstone holds PEI 300 top spot . 2024-06-04 . Private Equity International . en-GB.
  67. Web site: 2024-06-03 . The Largest Private Equity Firms in the World PEI 300 . 2024-06-04 . Private Equity International . en-GB.

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