ConnectWise Thoma Bravo Acquisition Aims to Transform IT Services

Thoma Bravo, a leading private equity firm, acquired ConnectWise, a leading software company, in 2015. This acquisition marked a significant shift in the IT services industry.

The acquisition aimed to accelerate ConnectWise's growth and expansion into new markets. Thoma Bravo's investment enabled ConnectWise to strengthen its product offerings and enhance its customer experience.

With Thoma Bravo's support, ConnectWise was able to expand its global reach and establish itself as a leader in the IT services industry. The company's software solutions now support over 100,000 customers worldwide.

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ChannelE2E hinted in a February 4 blog that the landmark deal was imminent. The companies confirmed the deal to ChannelE2E on February 19 under embargo, and publicly announced the buyout on February 25.

The deal was confirmed to ChannelE2E on February 19, under embargo, before being publicly announced on February 25. Thoma Bravo paid approximately $1.5 billion for ConnectWise, ChannelE2E estimates based on our research and long-term reporting in the industry.

Here are the clues that helped us estimate the deal's value:

ConnectWise, a leading software company, was acquired by Thoma Bravo in 2020. Thoma Bravo invested $2.85 billion to acquire a majority stake in ConnectWise.

The acquisition marked a significant milestone for ConnectWise, allowing the company to expand its offerings and reach a wider audience. This investment enabled ConnectWise to continue its mission of empowering IT service providers to succeed.

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Orlando Bravo is a seasoned investor who has made a name for himself in the world of private equity. He is the founder and managing partner of private equity firm Fir Tree Partners.

Orlando Bravo has a proven track record of successful investments. He has invested in companies across various industries, including consumer goods and financial services.

One of his notable investments is in the consumer goods space. Bravo's firm has invested in companies like Kraft Foods and Heinz.

As a privately held company, ConnectWise was considered the center of the MSP community.

It made major investments in building communities, something private equity firms would never do.

The company's focus on building communities was a key differentiator in its early years.

Not to get nostalgic, but I remember attending the first ConnectWise user group meeting in Providence, Rhode Island in 2008.

The company's commitment to its partners was evident in its willingness to help them succeed without asking for anything in return.

The author had a room of ConnectWise partners in Tampa, Florida to test his starter kit, and the company even co-hosted his starter kit videos and let him use the ConnectWise TV studio.

For your interest: Thomas Weisel Partners

ConnectWise has been acquired by Thoma Bravo, and here are some key facts about the deal:

The software company remains committed to driving partner success and growth.

ConnectWise will pursue organic growth and strategic acquisitions, but no imminent deals are planned, as the company is still digesting HTG and Sierra Group.

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The company's focus areas remain the same: everything as a service, cybersecurity, and partner education that improves business performance.

After 37 years at the helm, Arnie Bellini is transitioning into an advisory role to the company.

President and COO Jason Magee takes over as CEO.

In just three years, ConnectWise's EBITDA grew at an 81 percent compound annual growth rate (CAGR), and revenue had a 21 percent CAGR.

The company is eliminating about 110 positions, roughly 10 percent of the workforce, but also plans to make about 70 new hires in additional areas.

Recent rumors about ConnectWise merging with Thoma Bravo companies are false.

The Thoma Bravo acquisition of ConnectWise marks a turning point for our industry, potentially signaling the beginning of a new phase of maturity where AI, predictive analytics, and advanced security services lead the way.

Companies built by owners and teams with deep MSP roots and knowledge, like those that once dominated the industry, are becoming a rare breed. This shift is reminiscent of the past, when IT providers were primarily hardware companies that sold and fixed equipment.

This industry transformation is not just about the rise of new technologies, but also about the changing needs of customers. Today, customers don't buy services just for maintenance agreements; they're looking for high-value relationships and efficient businesses that can adapt to changing market conditions.

Thoma Bravo UK Advisers LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 1016286).

Thoma Bravo has a strong reputation for operational stewardship, with investors expecting tight and best-in-class management of businesses.

Investors in Thoma Bravo value the company's ability to support its portfolio companies, as Jay mentioned in the transcript.

The acquisition of ConnectWise by Thoma Bravo has sent shockwaves throughout the industry. ConnectWise, a leading provider of business management software for IT professionals, has been acquired by private equity firm Thoma Bravo for $270 million.

ConnectWise's CEO, Jason Magee, has taken the reins and is leading the company forward. He has a strong background in the industry and has been instrumental in shaping the company's direction.

The acquisition is a significant milestone for ConnectWise, marking a new chapter in the company's history. Arnie Bellini, the company's founder, has stepped down as CEO but will remain involved with the company.

Here are some key facts about the deal:

Thoma Bravo, the new owner of ConnectWise, is a well-established private equity firm with a strong track record in the industry. They have a clear vision for the company's future and are committed to supporting its continued growth and success.