Wikipedia

Thoma Bravo

Thoma Bravo, LPis an Americanprivate equityandgrowth capitalfirm based inChicago.[6]It is known for being particularly active in acquiringenterprise softwarecompanies[7]and has over $130billion inassets under managementas of 2023.[8]

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

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 inSan Francisco,New York City,LondonandMiami.[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 theenterprise softwaresector in 2002 with the acquisition of Prophet21, a provider of software for durable goods distributors.[16]

In 2014, the company acquiredRiverbed Technologyfor $3.6 billion.[17]Riverbed later filed forChapter 11 Bankruptcyin December 2021.[18]

After the purchase ofedtechcompanyInstructurein 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 companyMedalliaprivate for $6.4 billion.[20][21]

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

In March 2022, Thoma Bravo acquired the enterprisecloudsoftware companyAnaplanfor $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 buyNearmap,its first Australian acquisition, forA$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 outbidVista Equity Partnersto announce its acquisition ofCoupa Softwarefor $6.15 billion in cash, and a total enterprise value of $8 billion.[28][29]

In September 2023,Arlington Capital Partnersannounced it had bought Exostar, a software company headquartered inHerndon, Virginia,from Thoma Bravo for an undisclosed amount.[30]

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

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

Security investments

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In 2018, Thoma Bravo took cloud-first security providerBarracuda Networksprivate for $1.6 billion. In April 2022, it sold Barracuda toKKRfor about $4 billion.[34]

In January 2019, Thoma Bravo acquiredImpervafor $2.1 billion.[35]In July 2023, it then sold the company toThales Groupfor $3.6billion.[36]

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

On August 31, 2021, Thoma Bravo completed its $12.3 billion acquisition ofProofpoint.[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 buyPing Identityfor $2.8 billion in an all-cash transaction.[42]In October, it agreed to buyForgeRockfor $2.3 billion.[39]

Thoma Bravo acquired Canada-based digital investigation software maker Magnet Forensics forCA$1.8billion (US$1.34bn) in 2023, and merged it withGrayshift,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 acquireDarktrace,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 divestAdenzatoNasdaq, Inc.for $10.5 billion in a cash-and-stock deal. As part of the deal, it would get a 15percent 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 intoFTX.[51][52]Following the collapse of FTX, in February 2023, Thoma Bravo, Paradigm Operations andSequoia Capitalwere 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 fromFirst Chicago,and the firm's name was changed to Golder Thoma Cressey. With the promotion ofBruce Raunerto 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 $17.8billion for its 14th fund which launched in October 2020.[67]In December 2022, it raised $24.3billion for its 15th fund, whichPreqincalled the largest tech-focused buyout fund raised by an independent private-equity firm.[6]

In 2017, the firm launched aprivate creditplatform, 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 Internationalplaced Thoma Bravo fourth on thePEI 300ranking of the largest private equity firms.[70]

In February 2024,Fortunepublished 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 inFortune'slist, 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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  3. ^"Bravo! Thoma Bravo's software SPAC Thoma Bravo Advantage files for a $900 million IPO".Renaissance Capital.December 28, 2020.RetrievedOctober 6,2022.
  4. ^abSigalos, 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. ^abArmental, Maria (December 7, 2022)."Thoma Bravo Bags $32.4 Billion Including Largest Technology Buyout Fund".The Wall Street Journal.RetrievedJanuary 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.
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  37. ^Miller, Ron (December 12, 2022)."Thoma Bravo completes $3.9B Sophos acquisition".TechCrunch.
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  68. ^Blumenthal, Robin (October 26, 2020)."Thoma Bravo Names Thym to Lead Credit Platforms".Private Debt Investor.RetrievedJanuary 17,2024.
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