Key Takeaways
- • Thoma Bravo is exploring a sale of its approximately 55% stake in Command Alkon, a construction software provider, with an expected valuation between $1.5 billion and $1.75 billion, according to four sources familiar with the matter.
- • Command Alkon is on track to generate over $230 million in revenue and $92 million in EBITDA in 2026, with projected 11% revenue growth expected in 2027, making it a resilient software asset in a sector perceived as less vulnerable to AI disruption.
- • Heidelberg Materials, the German building materials company and Command Alkon's largest customer, co-owns the remaining 45% stake and plans to retain its position in any transaction, a structural constraint that limits appeal to traditional leveraged buyout sponsors seeking full control.
- • Thoma Bravo has engaged Evercore to manage the sale process and has already fielded interest from multiple private equity firms, though the co-ownership structure presents a material challenge to full acquisition scenarios.
- • Thoma Bravo originally acquired Command Alkon in 2020 and sold a 45% minority stake to Heidelberg Materials in 2021 in a transaction that valued the company at $1.7 billion, representing a modest appreciation in valuation over the current five-year holding period.
Summary
Thoma Bravo is actively exploring a sale of its controlling stake in Command Alkon, a provider of supply-chain management and construction software, according to Reuters reporting on May 14, 2026. The private equity firm is working with investment banking advisor Evercore to manage a sale process for its roughly 55% ownership position, with preliminary interest already received from competing private equity bidders. The anticipated transaction values Command Alkon at more than $1.5 billion, with Thoma Bravo targeting a valuation range between $1.5 billion and $1.75 billion based on current operational performance.
Command Alkon has demonstrated solid financial fundamentals that underpin the valuation range. The company is projected to generate over $230 million in revenue and $92 million in EBITDA during 2026, with anticipated 11% revenue growth expected in 2027. These metrics position Command Alkon as a relatively resilient software asset in a landscape where artificial intelligence disruption concerns have pressured valuations across the broader software sector. Thoma Bravo's strategic rationale for exploring a sale centers on capitalizing on this perceived resilience and generating returns in software verticals viewed as more insulated from broader AI-related risks.
A structural complication that may constrain deal economics is Heidelberg Materials' co-ownership position. The German building materials company, which is also Command Alkon's largest customer, holds a 45% stake acquired in 2021 and has signaled its intention to retain that position in any transaction. Most leveraged buyout sponsors prefer to acquire full operating control of portfolio companies, making a minority stake acquisition less attractive from a strategic standpoint. This retention requirement may limit the universe of potential buyers and could influence final valuation outcomes.
Thoma Bravo's initial investment in Command Alkon dates to 2020, when it acquired the company from previous owner Quilvest Capital Partners. The 2021 sale of a 45% minority stake to Heidelberg Materials valued the company at approximately $1.7 billion. The current sale process at $1.5 billion to $1.75 billion represents a modest appreciation or potential slight decline depending on the final price, reflecting approximately six years of hold time at the portfolio company. Command Alkon's position as a critical technology provider in the heavy construction supply chain, combined with its recurring revenue profile and embedded customer relationships, continues to underpin institutional investor interest in the asset.
Command Alkon has demonstrated solid financial fundamentals that underpin the valuation range. The company is projected to generate over $230 million in revenue and $92 million in EBITDA during 2026, with anticipated 11% revenue growth expected in 2027. These metrics position Command Alkon as a relatively resilient software asset in a landscape where artificial intelligence disruption concerns have pressured valuations across the broader software sector. Thoma Bravo's strategic rationale for exploring a sale centers on capitalizing on this perceived resilience and generating returns in software verticals viewed as more insulated from broader AI-related risks.
A structural complication that may constrain deal economics is Heidelberg Materials' co-ownership position. The German building materials company, which is also Command Alkon's largest customer, holds a 45% stake acquired in 2021 and has signaled its intention to retain that position in any transaction. Most leveraged buyout sponsors prefer to acquire full operating control of portfolio companies, making a minority stake acquisition less attractive from a strategic standpoint. This retention requirement may limit the universe of potential buyers and could influence final valuation outcomes.
Thoma Bravo's initial investment in Command Alkon dates to 2020, when it acquired the company from previous owner Quilvest Capital Partners. The 2021 sale of a 45% minority stake to Heidelberg Materials valued the company at approximately $1.7 billion. The current sale process at $1.5 billion to $1.75 billion represents a modest appreciation or potential slight decline depending on the final price, reflecting approximately six years of hold time at the portfolio company. Command Alkon's position as a critical technology provider in the heavy construction supply chain, combined with its recurring revenue profile and embedded customer relationships, continues to underpin institutional investor interest in the asset.
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