Key Takeaways
- • Thoma Bravo completed its $6.4 billion all-cash acquisition of Medallia in October 2021, taking the customer and employee experience software company private at $34.00 per share.
- • The acquisition price represented a 20% premium to Medallia's unaffected closing stock price on June 10, 2021, and a 29% premium to the company's 30-day average price prior to deal announcement.
- • Medallia shareholders approved the transaction on October 14, 2021, following the initial announcement on July 26, 2021; the company's common stock ceased trading on the NYSE upon deal completion.
- • As a private company under Thoma Bravo's ownership, Medallia retained its San Francisco headquarters and positioned itself to leverage Thoma Bravo's operating capabilities, capital support, and software sector expertise to accelerate innovation and market expansion in experience management.
Summary
Thoma Bravo, a leading software-focused private equity firm, completed its acquisition of Medallia, Inc., a global leader in customer and employee experience management software, for $6.4 billion in an all-cash transaction. The deal was initially announced on July 26, 2021, and received shareholder approval on October 14, 2021. Under the definitive merger agreement, Medallia shareholders received $34.00 per share in cash, which represented approximately a 20% premium to the company's unaffected closing price on June 10, 2021—the last full trading day before media speculation regarding a potential transaction—and a 29% premium to its 30-day average price at that time.
The transaction marked a significant inflection point for Medallia, which had operated as a public company since 2019. Leslie Stretch, President and CEO of Medallia, characterized the deal as positioning the company for the next phase of differentiated growth, noting that privatization would provide greater operational flexibility and access to Thoma Bravo's deep sector expertise and capital resources. Following the deal close, Medallia's common stock ceased trading on the NYSE and the company was delisted.
Thoma Bravo emphasized Medallia's market leadership in the experience management software segment, citing the company's best-in-class SaaS platform and artificial intelligence capabilities. Scott Crabill, a Managing Partner at Thoma Bravo, highlighted the firm's intent to expand Medallia's customer reach and drive continued innovation under private ownership. Medallia maintained its headquarters in San Francisco as part of the transaction structure, with the company positioned to leverage Thoma Bravo's operational and financial resources to strengthen its competitive position in the experience management market across diverse industry verticals and geographies.
The transaction marked a significant inflection point for Medallia, which had operated as a public company since 2019. Leslie Stretch, President and CEO of Medallia, characterized the deal as positioning the company for the next phase of differentiated growth, noting that privatization would provide greater operational flexibility and access to Thoma Bravo's deep sector expertise and capital resources. Following the deal close, Medallia's common stock ceased trading on the NYSE and the company was delisted.
Thoma Bravo emphasized Medallia's market leadership in the experience management software segment, citing the company's best-in-class SaaS platform and artificial intelligence capabilities. Scott Crabill, a Managing Partner at Thoma Bravo, highlighted the firm's intent to expand Medallia's customer reach and drive continued innovation under private ownership. Medallia maintained its headquarters in San Francisco as part of the transaction structure, with the company positioned to leverage Thoma Bravo's operational and financial resources to strengthen its competitive position in the experience management market across diverse industry verticals and geographies.
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