Thoma Bravo has agreed to acquire publicly traded QAD, a provider of cloud-based software used in manufacturing and supply chain applications, in an all-cash transaction with an equity value of approximately $2 billion.
QAD’s products are used by more than 2,000 manufacturing companies for enterprise resource planning (ERP), demand and supply chain planning (DSCP), global trade and transportation execution (GTTE) and quality management systems (QMS).
QAD’s software provides its customers with the ability to innovate and change business models to react quickly to disruptions caused by rapid changes in technology and changing consumer preferences. The company’s customers – called “Adaptive Manufacturing Enterprises” by QAD – are active in the automotive, life sciences, consumer products, food and beverage, high tech and industrial manufacturing sectors.
QAD (NASDAQ: QADA), led by CEO Anton Chilton, was founded in 1979 by Pamela Lopker and is headquartered in Santa Barbara, California with more than 30 offices globally. Following the close of the transaction, expected during the fourth quarter, Ms. Lopker intends to retain a significant ownership interest in the company and will continue to serve on the QAD board of directors.
QAD has annual revenues of more than $300 million and for the trailing twelve months had an EBITDA of $21.8 million.
“Today’s announcement, which is the culmination of a comprehensive process, represents a compelling opportunity to build on QAD’s impressive legacy and strong momentum while maximizing value for shareholders,” said Mr. Chilton. “Thoma Bravo has a deep appreciation for the world-class team, reputation and portfolio we have built at QAD, and with their strong support we are excited to take our business to the next level.”
“For more than a decade, we have admired QAD’s unparalleled history of delivering innovative solutions focused on the needs of global manufacturers,” said Scott Crabill, a managing partner at Thoma Bravo. “As the pace of change continues to accelerate and supply chains become more complex, we are committed to supporting QAD in delivering its vision and ensuring the company is well equipped to further expand its reach and portfolio. We look forward to partnering with Anton and his team to cement the company’s positioning as the intelligent, agile, and innovative partner of choice for Adaptive Manufacturing Enterprises.”
Morgan Stanley & Co. is the financial advisor to QAD, Moelis & Company is the financial advisor to Ms. Lopker, and Barclays is the financial advisor to Thoma Bravo.
Thoma Bravo specializes in investing in application, infrastructure and security software and technology-enabled services businesses. The firm’s investments typically are in the form of take-private transactions, leveraged buyouts and growth equity investments in established companies that have or can quickly reach EBITDA of greater than $50 million. Over the past 20 years, the firm, with offices in Chicago, Miami and San Francisco, has acquired more than 300 software companies totaling over $85 billion in enterprise value.
In October 2020, Thoma Bravo closed three new funds with just under $23 billion in capital commitments including Thoma Bravo Fund XIV LP (large equity investments) with $18 billion of capital; Thoma Bravo Discover Fund III LP (middle-market investments) with $4 billion of capital; and Thoma Bravo Explore Fund LP (lower middle-market equity investments) with $1 billion of capital.
© 2021 Private Equity Professional | June 29, 2021
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