(Bloomberg)-A statement on Tuesday stated that TPG is acquiring a majority stake in the automation software company Nintex, which is backed by Thoma Bravo.
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According to people familiar with the matter, the value of the transaction is more than 2 billion U.S. dollars, including debt, because the terms are confidential, so they did not want to be named. According to data from PitchBook, Nintex is valued at US$460 million in 2018.
Thoma Bravo will make an equity investment in the company and retain a significant minority stake.
Nintex CEO Eric Johnson said in an interview that Nintex helps customers automate processes without coding, which makes it easier for companies to adapt.
He said that popular uses of its products are onboarding new employees and helping manage remote work. It can also help companies figure out which processes need to be automated.
Rolling bet
In recent years, private equity firms have attracted competitors to invest in their portfolio companies. Seller rollovers are also becoming more common. New partners can provide some return on investment while also setting new valuations for assets. Thoma Bravo invested in Nintex for the first time in 2018.
“This is a growing trend in the software field,” said Nehal Raj, co-managing partner of TPG Capital. “As long as the two companies know each other, you can get the benefits of double bandwidth.”
Although not ready to talk about exit opportunities, Raj said that some of the world’s largest technology companies may seek deals in the Nintex field.
“ServiceNow, Microsoft, SAP, Salesforce, Oracle-they are all thinking about how to play a role in automation,” Raj said.
Hudson Smith, partner of Thoma Bravo, said the company can use the networks of the two companies to look for acquisition opportunities. The company has completed several transactions in the past few years and hopes to develop further in this way.
Morgan Stanley provided consulting services for TPG, and Bank of America was Nintex’s chief financial adviser. Nintex also accepted the advice of Macquarie Group.
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