Medallia announced that it has entered into a recapitalization agreement with its lenders to strengthen its financial foundation for long-term growth.
The transaction is expected to significantly reduce Medallia’s outstanding debt and provide $150 million of new capital. The company said the funding will help accelerate AI-driven innovation and customer-focused product investment.
Upon completion of the transaction, Medallia will transition ownership from Thoma Bravo to an investor group led by Blackstone, Apollo, and FS KKR Capital Corp.
Medallia has been focused on enterprise experience management since its founding in 2001. The company went public on the New York Stock Exchange in 2019 and was taken private in 2021.
The company said a new executive team joined 18 months ago to reinvent the business for an AI-first market, modernize operations, and sharpen strategic focus while maintaining strong profitability.
Medallia said the recapitalization advances its existing $500 million commitment to innovation over the next few years. The new capital is expected to help the company expand beyond traditional experience management into a more intelligent, predictive, and automated platform.
The company plans to expand generative AI and automation capabilities across its platform. These enhancements are intended to help organizations identify emerging patterns, predict business impact, and orchestrate intelligent actions at enterprise scale.
Medallia also plans to further evolve its Frontline-Ready AI foundation with deeper integrations across contact center, CRM, workflow, and emerging agentic AI ecosystems.
The company said customers, including Mayo Clinic Laboratories, Mazda North America, and Santander Bank, have recently shared how Medallia supports their experience management programs.
Medallia expects the transaction to close before the end of the year, subject to customary closing conditions and regulatory approvals. The company said operations will remain uninterrupted, with no anticipated impact on customers, employees, or partners.
Medallia is an AI-driven customer and employee experience platform trusted by enterprise organizations, including 7 of the Fortune 10.
KEY QUOTES:
“Today’s announcement marks a significant milestone towards the next generation of AI-led enterprise experience management. The transformation of Medallia has been well underway – what changes today is the pace. With a strengthened balance sheet and $150 million in new capital, we are accelerating our commitment to invest over $500 million in products and services for our customers over the next few years.”
Mark Bishof, CEO of Medallia
“Medallia is a profitable business with a strong track record serving many of the largest companies in the world. We’re confident in the business under this new capital structure and look forward to supporting its plans to invest in this next phase of innovation and growth.”
Brad Marshall, Global Head of Private Credit Strategies at Blackstone
