ConnectWise, a Tampa, Florida-based team management software company, has been acquired by private equity firm Thoma Bravo. The terms of the deal were undisclosed. And the transaction is expected to close on February 28.
Founded in 1982, ConnectWise’s management platform automates the full lifecycle of technology service delivery ranging from sales and service to project tracking and back-office functions. There are more than 25,000 partners in more than 65 countries using ConnectWise products.
Once the transaction is completed, ConnectWise founder and CEO Arnie Bellini is going to transition into an advisory role. And COO Jason Magee is going to become CEO of the company.
“Five years ago, we began exploring all of the financial options to accelerate the ConnectWise mission and our partners’ success. Thoma Bravo was the clear and obvious choice over an Initial Public Offering (IPO) and seven other private equity firms,” said Bellini in a statement. “Thoma Bravo is the premier investor in Software-as-a-Service (SaaS) technology. ConnectWise and Thoma Bravo have co-created a multi-year strategy that is aligned with our mission, vision, culture and partners. With this new relationship, we plan to accelerate our partners’ success worldwide.”
While Magee was COO, ConnectWise saw a 21% cumulative annual growth rate and more than 81 percent growth in EBITDA. Magee said that its success was founded on deep interactions with the company’s partners through IT Nation events and peer groups.
“We will continue to invest in our partner community and provide the solutions they need to deliver technology as a service to the world. I believe the Thoma Bravo partnership will accelerate our ability to continually develop the platform our partners need to succeed through acquisitions and innovation,” added Magee.
Thoma Bravo plans to advance ConnectWise’s long-term vision and roadmap. And ConnectWise’s partners can expect innovative cybersecurity solutions, go-to-market tools, and advanced education.
“Thoma Bravo has long recognized ConnectWise’s position as a leader and pioneer in the Managed Service Provider (MSP) and broader IT services space. For nearly 40 years, the company has been the market leader in providing the most comprehensive integrated software solutions to its community of partners,” explained Thoma Bravo partner Robert Sayle. “Under the strong leadership of Arnie and the management team, ConnectWise has innovated and created top tier products and services, and we are thrilled to partner with Jason to enable further success and opportunity for ConnectWise partners.”
For this deal, Holland & Knight served as the legal advisor to ConnectWise and Raymond James & Associates was the exclusive investment banking advisor to the Special Committee of the Board of Directors — which consisted of Steve Raymund and Stan Levy. Kirkland & Ellis LLP served as Thoma Bravo’s legal advisor. And Owl Rock Capital provided financing for the transaction.
