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Thoma Bravo

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Thoma Bravo, LP
Company typePrivate
IndustryPrivate equity
Predecessors
  • Golder Thoma & Co.
  • Golder Thoma Cressey Rauner (GTCR)
  • Thoma Cressey Equity Partners
  • Thoma Cressey Bravo
Founded2008; 16 years ago (2008)
Founders
HeadquartersChicago, Illinois
Number of locations
5
Key people
  • Jennifer James (managing director, chief operating officer and Head of Investor Relations & Marketing)[1]
  • Jerry Nowak (managing director, General Counsel and Chief Administrative Officer)[2]
  • Amy Coleman Redenbaugh (managing director, chief financial officer) [3]
ProductsInvestments, private equity funds, private credit funds
AUMUS$160 billion (2024)[4]
Number of employees
212 (2023)[5]
Websitethomabravo.com
Thoma Cressey Equity Partners logo in use before 2007 when the firm changed its name

Thoma Bravo, LP is an American private equity and growth capital firm based in Chicago.[6] It is known for being particularly active in acquiring enterprise software companies[7] and has over $130 billion in assets under management as of 2023.[8]

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.[9] It has additional offices in San Francisco, New York City, London and Miami.[10]

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.[11][12]

Investments

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As of July 2023, the company had completed over 440 software deals[13] and as of 2020, oversaw a portfolio of over 70 software companies.[14][15]

Software investments

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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.[16]

In 2014, the company acquired Riverbed Technology for $3.6 billion.[17] Riverbed later filed for Chapter 11 Bankruptcy in December 2021.[18]

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.[19]

In October 2021, Thoma Bravo took enterprise software company Medallia private for $6.4 billion.[20][21]

In September 2021, Thoma Bravo completed the acquisition of Stamps.com, an e-commerce shipping service provider, for approximately $6.6 billion in cash.[22]

In March 2022, Thoma Bravo acquired the enterprise cloud software company Anaplan for $10.7 billion (€9.6bn).[23] 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.[24][25]

In August 2022, the company agreed to buy Nearmap, its first Australian acquisition, for A$1.06 billion (US$730 million).[26] it has done over 300 software deals[27] 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.[28][29]

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.[30]

In November 2023, the company acquired health-records software company NextGen Healthcare for a total enterprise value of $1.8 billion.[31][32]

In March 2024, the company agreed to take Everbridge, a provider of critical event management software, private for approximately $1.8 billion.[33]

Security investments

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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.[34]

In January 2019, Thoma Bravo acquired Imperva for $2.1 billion.[35] In July 2023, it then sold the company to Thales Group for $3.6 billion.[36]

In March 2020, Thoma Bravo completed its $3.9 billion acquisition of Sophos.[37]

On August 31, 2021, Thoma Bravo completed its $12.3 billion acquisition of Proofpoint.[38]

In 2022, Thoma Bravo made a series of security related investments.[39] In April, it announced the acquisition of identity security company SailPoint for $6.9 billion with financing from private lenders.[40][41] In August, it agreed to buy Ping Identity for $2.8 billion in an all-cash transaction.[42] In October, it agreed to buy ForgeRock for $2.3 billion.[39]

Thoma Bravo acquired Canada-based digital investigation software maker Magnet Forensics for CA$1.8 billion (US$1.34bn) in 2023, and merged it with Grayshift, a digital forensics firm in its existing portfolio that it gained majority control the previous year.[43][44][45]

In April 2024, Thoma Bravo agreed to acquire Darktrace, a UK-based cybersecurity company, in a private transaction valued at $5.3 billion.[46]

Fintech investments

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In May 2022, Thoma Bravo acquired Bottomline Technologies for $2.6 billion.[47]

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 15 percent stake in Nasdaq.[48]

In July 2021, Thoma Bravo acquired clinical payment technology provider, Greenphire LLC.[49][50]

In June 2021, Thoma Bravo invested $125 million into FTX.[51][52] 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.”[53][54] In 2024, Orlando Bravo stated that the firm would cease making further cryptocurrency investments due to the fallout.[4]

History

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Assets under management (USD billions)[19][55][56][57]

In 1980 Stanley Golder and Carl Thoma established Golder Thoma & Co,[58] a company that has been credited as creating the "consolidation" or "buy and build" investment strategy.[59][60] 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).[61]

In 1998, the firm split into two firms: GTCR Golder Rauner and Thoma Cressey Equity Partners.[62]

In 2008, Thoma Cressey Bravo was renamed Thoma Bravo after Bryan Cressey left the company.[63][64]

The firm closed its 12th fund in September 2016, with $7.6 billion.[65] Thoma Bravo raised $12.6 billion for its 13th fund, which was announced in January 2019.[66] It raised $17.8 billion for its 14th fund which launched in October 2020.[67] In December 2022, it raised $24.3 billion for its 15th fund, which Preqin called the largest tech-focused buyout fund raised by an independent private-equity firm.[6]

In 2017, the firm launched a private credit platform, which focuses on investments in software and technology companies.[68]

The company moved its operations to Miami, Florida at the end of 2020.[69]

In June 2023, Private Equity International placed Thoma Bravo fourth on the PEI 300 ranking of the largest private equity firms.[70]

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 $58 billion 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's 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%.[71][72]

In June 2024, Thoma Bravo was ranked seventh on Private Equity International's PEI 300 ranking.[73][74]

See also

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References

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  1. ^ "Thoma Bravo: Best Fundraising Firm – Mid-Cap Buyout (fund size above USD10bn)". Private Equity Wire. November 19, 2021. Retrieved October 6, 2022.
  2. ^ "Kirkland Lawyers Flock to Posts at Private Equity Companies". Bloomberg Law. Retrieved October 6, 2022.
  3. ^ "Bravo! Thoma Bravo's software SPAC Thoma Bravo Advantage files for a $900 million IPO". Renaissance Capital. December 28, 2020. Retrieved October 6, 2022.
  4. ^ a b Sigalos, MacKenzie; Levy, Ari (September 5, 2024). "Thoma Bravo founder vows to 'never touch' crypto again after disastrous bet on FTX". CNBC.
  5. ^ Form ADV (PDF) (Report). U.S. Securities and Exchange Commission. March 31, 2023. p. 11.
  6. ^ a b Armental, Maria (December 7, 2022). "Thoma Bravo Bags $32.4 Billion Including Largest Technology Buyout Fund". The Wall Street Journal. Retrieved January 18, 2024.
  7. ^ Savitz, Eric J. (January 20, 2023). "He Might Be Tech's Last Bull. Here's Why the Founder of Thoma Bravo Is Still Buying". Barron's.
  8. ^ Weil, Dan (September 8, 2023). "Tennis, Anyone? A Former Star Applies Lessons From the Sport to Private Equity". Institutional Investor.
  9. ^ "Team Members | Thoma Bravo". thomabravo.com. Retrieved June 29, 2017.
  10. ^ "Thoma Bravo Contact". Thoma Bravo. Retrieved October 18, 2023.
  11. ^ "Thoma Bravo, LLC: Private Company Information - Bloomberg". www.bloomberg.com. Retrieved June 29, 2017.
  12. ^ Shabong, Yadarisa (October 14, 2019). "Buyout firm Thoma Bravo adds Sophos to its cybersecurity chest with $3.8 billion deal". Reuters.
  13. ^ Beltran, Luisa (July 31, 2023). "Meet the most powerful private equity investors from Blackstone, Vista Equity, and Apollo". Fortune. Retrieved January 18, 2024.
  14. ^ Marek, Lynne (October 26, 2020). "Thoma Bravo raises $22.8 billion". Crain's Chicago Business.
  15. ^ Lynn, Alex (October 13, 2020). "Performance watch: Thoma Bravo's PE funds". Private Equity International.
  16. ^ "Thoma Cressey Equity Partners and LLR Partners Announce Sale of Prophet 21 Inc. to Activant Solutions Inc". www.businesswire.com. August 17, 2005. Retrieved June 29, 2017.
  17. ^ Thoma Bravo. "Riverbed to be Acquired by Thoma Bravo for $21.00 Per Share in Cash". www.thomabravo.com. Retrieved December 2, 2022.
  18. ^ Chutchian, Maria (December 3, 2021). "Riverbed Technology nets approval of $1bn debt-cutting plan". Reuters. Retrieved December 2, 2022.
  19. ^ a b Gara, Antoine (December 7, 2021). "Buyout firm Thoma Bravo goes from niche to big league". Financial Times. Retrieved December 2, 2022.
  20. ^ Mehta, Chavi (July 26, 2021). "Thoma Bravo to take software firm Medallia private for $6.4 bln". Reuters.
  21. ^ Jain, Shweta (December 8, 2021). "Mubadala invests in US enterprise software company Medallia". The National.
  22. ^ "Thoma Bravo Completes Acquisition of Stamps.com". Thoma Bravo. October 5, 2021.
  23. ^ "Anaplan acquired by Thoma Bravo in $10.7bn deal". www.channelweb.co.uk. March 21, 2022. Retrieved March 21, 2022.
  24. ^ Primack, Dan (June 22, 2022). "Thoma Bravo's big tech repricing". Axios.
  25. ^ Indap, Sujeet (June 12, 2022). "Thoma Bravo seizes on pay issue to lower Anaplan buyout price". Financial Times. Retrieved December 2, 2022.
  26. ^ Fildes, Nic (August 22, 2022). "Thoma Bravo agrees $730mn takeover of Australia mapping company". Financial Times.
  27. ^ St. Anthony, Neal (March 23, 2021). "Thoma Bravo will buy Minneapolis-based Calabrio from KKR". Star Tribune.
  28. ^ Malik, Yuvraj (December 12, 2022). "Thoma Bravo to buy Coupa Software for $6.15 bln amid tech slump". Reuters.
  29. ^ Hammond, Ed; Davis, Michelle F; Deveau, Scott (December 12, 2022). "Thoma Bravo Wins Battle for Coupa in $6.2 Billion Deal". Bloomberg News.
  30. ^ Satellite Evolution Group (September 26, 2023). "Arlington Capital partners to acquire Exostar from Thoma Bravo". Satellite Evolution. Retrieved September 26, 2023.
  31. ^ "Private-equity firm Thoma Bravo to take NextGen Healthcare private". Reuters. September 6, 2023.
  32. ^ Brock E.W. Turner (November 10, 2023). "Thoma Bravo closes $1.8B acquisition of NextGen Healthcare". Modern Healthcare. Retrieved November 19, 2023.
  33. ^ "Thoma Bravo lifts offer price for software firm Everbridge". Reuters. March 1, 2024.
  34. ^ Baker, Liana; Tse, Crystal (April 12, 2022). "KKR Agrees to Buy Thoma-Backed Cybersecurity Company Barracuda". Bloomberg News. Retrieved April 13, 2022.
  35. ^ Baumer, Lilach (January 19, 2019). "Thoma Bravo Completes Acquisition of Imperva". Calcalist.
  36. ^ Hepher, Tim; Rosemain, Mathieu (July 25, 2023). "France's Thales to buy Imperva in $3.6 bln cybersecurity deal". Reuters.
  37. ^ Miller, Ron (December 12, 2022). "Thoma Bravo completes $3.9B Sophos acquisition". TechCrunch.
  38. ^ "Thoma Bravo Completes Acquisition of Proofpoint | Proofpoint US". Proofpoint. August 30, 2021. Retrieved February 23, 2024.
  39. ^ a b Miller, Ron (October 11, 2022). "Thoma Bravo buys third identity company this year with $2.3B ForgeRock acquisition". TechCrunch. Retrieved October 11, 2022.
  40. ^ "Thoma Bravo to take identity security company SailPoint private for $6.9B". TechCrunch. Retrieved April 13, 2022.
  41. ^ "Thoma Bravo agrees $6.9bn deal for cyber security group SailPoint". Financial Times. April 11, 2022. Retrieved December 2, 2022.
  42. ^ Prakash, Prarthana (August 3, 2022). "Ping Identity Surges After Thoma Bravo Deal Announced". Bloomberg News. Archived from the original on August 3, 2022.
  43. ^ Wiggers, Kyle (January 20, 2023). "Thoma Bravo agrees to acquire digital forensics firm Magnet Forensics for over $1B". TechCrunch.
  44. ^ "Thoma Bravo expands cybersecurity reach with $1.34 bln Magnet Forensics deal". Reuters. January 20, 2023.
  45. ^ Mandel, Charles (April 10, 2023). "Magnet Forensics to delist from TSX as $1.8 billion merger deal closes". BetaKit.
  46. ^ Reid, Jenni (April 26, 2024). "UK tech darling Darktrace rallies 17% after agreeing $5.32 billion private equity sale to Thoma Bravo". CNBC. Retrieved April 26, 2024.
  47. ^ Rica Dela Cruz (May 13, 2022). "Thoma Bravo completes $2.6B acquisition of Bottomline". S&P Global.
  48. ^ Gara, Antoine; Hughes, Jennifer; Paolo Mancini, Donato (June 12, 2023). "Nasdaq to buy Adenza for $10.5bn in US exchange operator's biggest deal". Financial Times.
  49. ^ Nobile, Jeremy (May 27, 2021). "Riverside to sell Greenphire portfolio company to Thoma Bravo". Crain's Cleveland Business.
  50. ^ Bravo, Thoma. "Thoma Bravo Completes Strategic Growth Investment in Greenphire". www.prnewswire.com (Press release). Retrieved May 25, 2024.
  51. ^ "How Sam Bankman-Fried seduced blue-chip investors". Financial Times. November 11, 2022. Archived from the original on November 11, 2022. Retrieved November 12, 2022.
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  53. ^ Rosenblatt, Joel (February 15, 2023). "FTX Investor Sues Sequoia Capital, Thoma Bravo, Paradigm". Bloomberg. Retrieved March 4, 2024.
  54. ^ Katz, Michael. "Sequoia Capital, Thoma Bravo, Paradigm Sued for Touting FTX". Chief Investment Officer. Retrieved March 2, 2024.
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  64. ^ "Personality Profile: Cressey Takes Specialization To The Next Level." Buyouts, June 23, 2008
  65. ^ de la Merced, Michael J. (September 12, 2016). "Thoma Bravo Raises $7.6 Billion Fund to Pursue More Tech Deals". Deal B%k: NYTimes. Retrieved June 29, 2017.
  66. ^ "Thoma Bravo raises $12.6 billion for latest private equity fund". Reuters. January 29, 2019. Retrieved March 15, 2019.
  67. ^ Singh, Preeti (October 26, 2020). "Thoma Bravo Raises $22.8 Billion in Record Tech-Fundraising Haul". Wall Street Journal. Retrieved January 17, 2024.
  68. ^ Blumenthal, Robin (October 26, 2020). "Thoma Bravo Names Thym to Lead Credit Platforms". Private Debt Investor. Retrieved January 17, 2024.
  69. ^ "Bravo Family Foundation dona $250,000 para apoyar a Surfside". CB en Español (in Spanish). June 28, 2021. Retrieved July 9, 2021.
  70. ^ "PEI 300 | The Largest Private Equity Firms in the World". Private Equity International. June 1, 2023. Retrieved June 2, 2023.
  71. ^ 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. Retrieved March 4, 2024.
  72. ^ Beltran, Luisa (February 28, 2024). "Private equity's Class of 2021 faces moment of truth: how tech bets from the bubble market are panning out". Yahoo! Finance. Fortune. Retrieved March 4, 2024.
  73. ^ Beer, Helen de (June 3, 2024). "Blackstone holds PEI 300 top spot". Private Equity International. Retrieved June 4, 2024.
  74. ^ "The Largest Private Equity Firms in the World | PEI 300". Private Equity International. June 3, 2024. Retrieved June 4, 2024.
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