Thoma Bravo acquires business planning software company Anaplan

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Private equity firm Thomas Bravo acquires Anaplan and the privatization of the commercial performance software maker. The deal is valued at $10.7 billion, the companies said.

This is the number 285 tech M&A deal that ChannelE2E has covered so far in 2022. Discover over 1,000 tech M&A deals involving MSPs, MSSPs and IT service providers listed here.

Software Capabilities from Anaplan, IT Consulting Partners

Anaplan develops Hyperblock software, which enables companies to “contextualize real-time performance and predict future outcomes for faster, more confident decisions,” the company claims. Anaplan has over 175 partners and more than 1,900 customers worldwide.

Anaplan’s software is designed for multiple departments and use cases, including finance, sales, supply chain planning, HR, workforce, and marketing. Several IT consulting firms have built tailor-made solutions for Analplan. Examples include:

  • Sales Performance Management Software for Telecom Service Providers Accenture;
  • Closed Loop Marketing Software Deloitte;
  • tax filing software EY; and
  • Supply chain optimization software is Spaulding Ridge.

Anaplan Business Concerns

Anaplan was in growth mode before the company was sold to Thoma Bravo. Indeed, revenue was $162.7 million in the fourth quarter of fiscal 2022, up nearly 33% from the fourth quarter of the prior year. Still, the GAAP operating loss was $53.8 million in the fourth quarter of fiscal 2022.

Orlando Bravo, CEO, Thoma Bravo

However, Anaplan’s stock fell sharply in November 2021 amid concerns on Wall Street about slowing growth rates in order billings and software subscriptions, Looking for Alpha rated on November 24, 2021.

Ironically, Thoma Bravo CEO Orlando Bravo in March 2022 warned that “growth at all costs” for software companies was over. During an interview with CNBC, Bravo noted that “strong growth” without near-term earnings prospects equates to a valuation discount on Wall Street.

Fast forward to Thoma Bravo’s takeover bid, and Anaplan’s stock jumped nearly 30% in premarket trading, according to Seeking Alpha premarket data for March 21, 2022.

Thoma Bravo Acquires Anaplan: Management Insights

In a prepared statement about the deal, Anaplan’s chairman and CEO Frank Calderoni said:

“We are delighted to partner with Thomas Bravo to leverage the strength of our innovative platform and capitalize on the huge opportunity and incredible demand we are seeing. This is a clear validation of the exceptional work of our team and the start of an exciting new chapter for Anaplan, our customers and our partner ecosystem. We are confident that Thoma Bravo’s resources and knowledge will help us accelerate and scale our growth strategy.

Added Holden Spathmanaging partner at Thoma Bravo:

“Anaplan is an undisputed leader in connected planning, solving the critical business priorities of the world’s largest companies as they implement strategic and complex digital transformations. We’ve been following Anaplan for years and have seen the incredible value they bring to customers through their industry-leading planning platform. We look forward to leveraging Thoma Bravo’s extensive operational and investment expertise in enterprise software to support Anaplan in its future growth.

Concluded Tara Gadgilpartner at Thoma Bravo:

“Anaplan has built an extremely successful business through product innovation and a disciplined approach to delivering value to its customers and partner ecosystem. We look forward to working closely with the talented and experienced team at Anaplan to continue delivering cloud-native SaaS solutions at scale.

About Thomas Bravo

Thomas Bravo is one of the largest private equity firms in the world, with more than $103 billion in assets under management as of December 31, 2021, the company notes.

In addition to focusing on enterprise software, Thoma Bravo has investments in the MSP software business. Major holdings and holdings include ConnectWise, Barracuda Networks, N-able and SophosJust to name a few.

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