Key Takeaways
- • Thoma Bravo is exploring a sale of its approximately 55% stake in Command Alkon, a construction software developer, with Evercore managing the sale process and preliminary inquiries from other private equity firms already received.
- • The transaction is expected to value Command Alkon above $1.5 billion, with Thoma Bravo targeting a valuation range of $1.5 billion to $1.75 billion—representing significant upside from the firm's 2020 acquisition price of $1.7 billion.
- • Command Alkon generated projected 2026 revenue exceeding $230 million with $92 million in EBITDA, with an anticipated 11% revenue growth rate projected for 2027, positioning the software company as a profitable, growing asset in a sector viewed as less exposed to AI disruption.
- • Heidelberg Materials, which co-owns 45% of Command Alkon and serves as the company's largest client, intends to retain its stake in any transaction, creating a structural complexity that may limit buyer interest among private equity firms typically seeking full operational control.
- • Thoma Bravo's divestiture strategy reflects the firm's focus on realizing returns from software assets positioned in segments deemed more resilient to widespread artificial intelligence disruption.
Summary
Thoma Bravo is evaluating the sale of its majority stake in Command Alkon, a construction software developer, according to four individuals with knowledge of the transaction. The private equity firm, which owns approximately 55% of the company, has retained Evercore to manage the sale process. Multiple private equity groups have already submitted preliminary inquiries, indicating active market interest in the asset despite the structural constraints outlined below.
The proposed transaction would value Command Alkon above $1.5 billion, with Thoma Bravo specifically targeting a valuation range between $1.5 billion and $1.75 billion. This represents a notable return on the firm's 2020 acquisition, when Thoma Bravo purchased Command Alkon for $1.7 billion. Thoma Bravo subsequently divested a 45% stake to Heidelberg Materials, a German building materials company, in 2021, establishing the current ownership structure.
Command Alkon's financial performance supports the elevated valuation. The company is projected to generate more than $230 million in revenue and $92 million in EBITDA during 2026, with anticipated 11% revenue growth projected for 2027. This profitability and growth trajectory have positioned the asset favorably among software-focused private equity investors.
A critical constraint affecting the sale dynamics is Heidelberg Materials' dual role as both a significant equity holder and Command Alkon's largest client. Heidelberg has signaled its intention to retain its ownership stake under any transaction structure. This arrangement creates structural complications for prospective private equity buyers, who conventionally pursue full operating control in leveraged buyout transactions. The presence of a strategic co-investor retaining control and maintaining a dominant customer relationship may narrow the universe of interested acquirers and potentially influence deal economics.
Thoma Bravo's divestiture initiative reflects the broader private equity positioning within software markets perceived as less vulnerable to disruption from artificial intelligence technologies—a key strategic consideration in current fund deployment and return generation strategies across the alternatives industry.
The proposed transaction would value Command Alkon above $1.5 billion, with Thoma Bravo specifically targeting a valuation range between $1.5 billion and $1.75 billion. This represents a notable return on the firm's 2020 acquisition, when Thoma Bravo purchased Command Alkon for $1.7 billion. Thoma Bravo subsequently divested a 45% stake to Heidelberg Materials, a German building materials company, in 2021, establishing the current ownership structure.
Command Alkon's financial performance supports the elevated valuation. The company is projected to generate more than $230 million in revenue and $92 million in EBITDA during 2026, with anticipated 11% revenue growth projected for 2027. This profitability and growth trajectory have positioned the asset favorably among software-focused private equity investors.
A critical constraint affecting the sale dynamics is Heidelberg Materials' dual role as both a significant equity holder and Command Alkon's largest client. Heidelberg has signaled its intention to retain its ownership stake under any transaction structure. This arrangement creates structural complications for prospective private equity buyers, who conventionally pursue full operating control in leveraged buyout transactions. The presence of a strategic co-investor retaining control and maintaining a dominant customer relationship may narrow the universe of interested acquirers and potentially influence deal economics.
Thoma Bravo's divestiture initiative reflects the broader private equity positioning within software markets perceived as less vulnerable to disruption from artificial intelligence technologies—a key strategic consideration in current fund deployment and return generation strategies across the alternatives industry.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.