Non-public fairness large Thoma Bravo is engaged on a doable bid for Twitter, a supply near the state of affairs advised The Put up — establishing what might be a rival to Elon Musk’s supply for the social large.
“They’re making a push,” the supply stated of the private-equity agency that already owns tech names together with McAfee and Landesk.
It’s not clear what Thoma Bravo may bid or when it might current the Twitter board with its bid. The agency has an inner crew engaged on the potential transaction, the supply accustomed to the matter advised The Put up.
“You aren’t far off,” a second supply near the state of affairs stated when requested by The Put up if Thoma Bravo was engaged on a doable bid for Twitter.
Thoma Bravo might be a white knight for the corporate and CEO Parag Argawal, one of many sources stated.
Musk on Thursday made a non-binding supply of $54.20 a share for Twitter, telling the corporate it was his finest and remaining supply. If the board doesn’t settle for his supply, “I would wish to rethink my place as shareholder,” Musk stated. Later Thursday he stated he wasn’t certain if he’d have the ability to purchase Twitter.
The Tesla founder and world’s richest man earlier this month revealed he owned 9.2% of the shares of Twitter.
Twitter, if it rejects Musk’s supply, might see its share value collapse until it had one other choice to reveal on the time of a doable rejection. That’s the place a so-called white knight would are available in.
Due to that, Thoma Bravo wants to maneuver rapidly — if it elects to maneuver ahead — to point out the Twitter board it has a doubtlessly friendlier different, sources advised The Put up.
On its web site, Thoma Bravo says: “Our non-public fairness funding autos make use of the identical funding philosophy — to accomplice with and help current administration groups to assist ship strong working outcomes and drive innovation”.
Musk has in distinction sharply criticized the Twitter administration crew.
Thoma Bravo invests sometimes in business-to-business software program corporations and never corporations that cater on to shoppers, like Twitter. In 2020, the San Francisco- and Chicago-based agency introduced the closing of a $17.8 billion buyout fund, and thru its completely different autos says it has $103 billion in belongings underneath administration.
In the meantime, Twitter generates important money circulation and isn’t a nasty leveraged buyout candidate, one of many sources stated. Thoma Bravo sees potential for the corporate in the case of controlling prices and widening revenue margins, the supply stated.
Thoma Bravo final month reportedly reached a $10.7 billion buyout settlement to amass listed Anaplan, an organization that makes software program modeling for various enterprise outcomes.
There was an enormous demand from Thoma Bravo fund buyers to co-invest within the deal outdoors the fund, and plenty of may co-invest in a a lot bigger Twitter deal, the supply stated.