Thoma Bravo explores $2 billion-plus sale of Foundation Software, sources say

NEW YORK, Sept 2 — Thoma Bravo is exploring a sale of ​Foundation Software that could value the construction software company at more than $2 billion, according to people familiar with the ‌matter.

The company is working with investment bankers at William Blair on the process, which ⁠has attracted interest from both ​private equity firms and corporate ⁠buyers, said the people, who asked not to be identified ‌discussing confidential matters.

Foundation Software ‌develops accounting, payroll, project management and field operations software ⁠for construction contractors, particularly small- and ⁠midsize specialty contractors.

The company generates more than $200 million in annual revenue and more than $100 million in earnings before interest, taxes, depreciation and amortization (EBITDA), the sources said. Foundation Software was founded in 1985 and is based in Strongsville, Ohio. Thoma Bravo ‌acquired it in 2020 through a strategic ​growth investment.

Representatives for Thoma Bravo declined to comment. Foundation Software and William Blair did not immediately respond to Reuters requests for comment.

The process comes amid a pickup in private equity software deal activity as improving financing markets and demand for profitable vertical software companies have encouraged sponsors to pursue exits.

Thoma Bravo has ​recently been active monetizing software investments. In August, it agreed to ‌sell a majority ‌stake in ⁠construction materials software provider Command Alkon to Francisco Partners.

Earlier this year, the firm also agreed to sell Heavy Construction Systems Specialists, a software provider focused on the heavy civil construction industry, to ‌Germany's Nemetschek Group in ​a deal valued at more than ‌2 billion euros, according ⁠to media ​reports.

(Reporting by Milana Vinn in New York; Editing by Colin Barr and ​Nick Zieminski)

Related topics