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Thoma Bravo to take software firm Medallia private for $6.4 billion

By Reuters

-Enterprise software firm Medallia Inc said on Monday private equity firm Thoma Bravo would take the company private for $6.4 billion in cash.

Medallia shareholders will receive $34 per share in cash, a premium of nearly 20% to the stock’s close on June 10, the last trading day before media reports that the San-Francisco based company was mulling a potential sale boosted the stock price.

Medallia, the customer survey software provider, that went public over just two years ago, competes with the likes of Survey Monkey and Qualtrics.

Thoma Bravo is one the largest software-focused private equity firms with more than $78 billion in assets under management. Its portfolio companies include information technology services provider SolarWinds Corp and cybersecurity firm McAfee Corp.

Medallia’s deal with Thoma Bravo, which is expected to close this year, also includes a 40-day “go-shop” period wherein the company can consider alternative deals.

Blackstone Credit along with some funds managed by Apollo Capital Management and KKR Credit will provide debt financing for the deal.

Morgan Stanley & Co, BoFA Securities and Wells Fargo Securities served as the financial advisers to Medallia.

Medallia shares were up 1.2% in premarket trading.