Private equity firm Thoma BravoOpens a new window has announced its plan to buy French data integration firm Talend for $2.4 billion. Following the acquisition, Talend will leverage Thoma Bravo’s experience in funding market-leading software companies to realize its strategy of successfully transitioning to the cloud.Â
The acquisition value represents a premium of around â€œ29% to Talend’s closing price on March 9 and an 81% premium to the volume-weighted average price over the last twelve monthsâ€, reflecting the data integration solutions company’s growth over the past few years and its promise for the future.
â€œWith the successful advancement of our transformation effort led by our CEO over the past year, the Talend Board and management team conducted a targeted process with potential financial and strategic parties to determine the best path forward for the Company. We believe the transaction with Thoma Bravo validates the Talend team’s success in building a data market leader,â€ said Steve Singh, Chairman of the Board of Talend.
Founded in 2005, Talend is among the top cloud data integration leaders and offers tools that allow enterprises to collect, govern, transform and share data. Its data fabric empowers organizations to operationalize their data, and its cloud-native orchestration platform helps organizations bring together all their data, wherever it may sit, to solve their most complex problems.
Named as a leader in the 2020 Magic Quadrant for data integration tools by Gartner, Talend competes with Informatica, Fivetran, Matillion, and major cloud vendors like IBM and Oracle. Last month, the company announced financial results for the fourth quarter ended December 31, 2020, reporting total revenue of $78.9 million, up 17% year-over-year.
Over the past year, as organizations looked towards embracing digital transformation to attune to new trends induced by the global pandemic, Talend was also prompted to redesign its market strategy to offer better solutions to its customers and gear up to combine cloud with the data explosion.Â
In line with this new-founded mission, it opened a second cloud data center in Europe, achieved AWS migration competency status, and made some significant changes in its top management. According to its newly appointed CEO, Christal Bemont, this deal with Thoma Bravo will give Talend â€œadditional capital, resources, and expertiseâ€ to leverage an immense market opportunity as more and more businesses are looking to become data-driven.
â€œWe are thrilled to partner with the management team at Talend to continue to build upon their leadership position in the cloud data integration market,â€ said Seth Boro, a managing partner at Thoma Bravo. â€œWe are confident we can apply our experiences working with market-leading software companies to accelerate Talend’s growth and complete its transition to the cloud.â€
With its offices in Chicago and San Francisco, Thoma Bravo is a private equity and growth capital firm that boasts an impressive portfolio of leading software companies in application vertical markets, infrastructure, and cybersecurity. Focused on the software and technology-enabled services sectors, the company has built up a portfolio that includes Autodata, Blue Coat, Infovista, Mediware, and more.Â
It recently acquired RealPage Inc., the Texas-based real estate software company at $10.2 billion in an all-cash deal. In December, Thoma Bravo also bought a majority stake in software firm Flexera for $2.85 billion. Currently, the company has about $77 billion in assets under its management.
The acquisitionOpens a new window is subject to regulatory approval and is yet to be finalized. Both the companies expect to close the deal once at least 80% of outstanding shares have been tendered. Thoma Bravo will launch a tender offer as soon as works council consultations have been completed and the board recommends it. The tender offer is expected to close in the third quarter of 2021, following the completion of acquisition sometime in the fourth quarter.