Deal: Thoma Bravo To Buy Medallia For $6.4B

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A certain private equity firm is on a spree making big deals in the tech industry. That firm is Thoma Bravo, which has reached a deal to buy Medallia, a publicly-traded tech company that makes survey software for enterprises.

  • Thoma Bravo has agreed to pay $34 per share to take Medallia (NYSE: MDLA) off the public markets into its hands. That price sums up to $6.4bn and a 20% premium to Medallia’s closing share price on the 10th of July, the day before rumor acquisitions of the company began swirling.
  • Medallia debuted on the public markets in 2019 and is now being acquired barely two years later. Its $34-per-share acquisition price is about 60% higher than its IPO debut price of $21 two years ago.
  • Under Thoma Bravo’s ownership, Medallia will continue to function as usual with a growth strategy. The ultimate aim for private equity firms like Thoma is to grow its portfolio companies and flip them for a higher price in the future, either through a sale or an exit on the public markets.
  • Thoma Bravo’s agreement with Medallia includes a 40-day “go-shop” period where Medallia can seek a higher counteroffer to Thoma Bravo’s. If no counteroffer is given, the acquisition is expected to proceed and be completed this year.
  • Barely two weeks ago, Thoma Bravo agreed to buy Stamps.com, an online postage company, for the sum of $6bn. Now, the firm is back with another similarly-sized deal for Medallia. The same Thoma agreed to buy cybersecurity company Proofpoint for $12bn earlier in April, speak of a shopping spree.
  • Thoma raised $18bn for its latest buyout fund last October. Coupled with the usual debt financing present in its deals, it’s obvious that the firm is deploying its capital at a steady rate.

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