Thryv Holdings has entered into a definitive agreement to sell its print directories business to private equity firm Carolwood L.P. for $142 million in cash, advancing the company’s transformation toward an AI-powered software business focused on local service companies.
The divestiture includes Thryv’s Print Yellow and White Pages businesses in the United States, Australia and New Zealand, the digital editions of those directories and Australia White Pages online. Thryv will retain its Internet Yellow Pages and other online properties.
Thryv plans to use the net proceeds from the transaction to repay outstanding debt and other liabilities. The company expects the sale to strengthen its balance sheet and materially improve its financial profile going forward.
The transaction represents another major step in Thryv’s transition away from its legacy directory businesses and toward a software-as-a-service model.
Thryv now positions itself primarily around its AI-powered Growth Platform, which helps local service businesses improve online discovery, identify prospective customers and measure the return generated by marketing and sales activity.
The platform includes AI-powered websites, AI Lead Insights and integrations with customer relationship management systems already used by service businesses. Approximately 100,000 businesses worldwide currently use Thryv software.
The print sale follows a previously announced restructuring and the August launch of the Thryv Growth Platform. Taken together, the initiatives reflect the company’s effort to concentrate capital and management resources on its software operations.
Carolwood is a Los Angeles-based multi-strategy private equity firm founded in 2014. The firm focuses on acquiring businesses and assets with repositioning and long-term growth potential.
Carolwood has also developed systems for separating businesses that have operated as deeply integrated corporate subsidiaries and transitioning them into standalone companies, a capability that could be particularly relevant as Thryv separates its print operations from the broader organization.
The companies plan to enter into a management services agreement following completion of the transaction. Under that arrangement, Thryv will continue providing certain services for a period after closing to help maintain operational continuity as the print business transitions to Carolwood.
The transaction is expected to close during the fourth quarter of 2026, subject to customary closing conditions.
Kroll Investment Banking is serving as exclusive financial advisor to Thryv, while Holland & Knight is serving as its legal counsel. Sheppard Mullin Richter & Hampton is advising Carolwood.
For Thryv, selling the print directory operation removes another legacy component of the business while generating cash that can be directed toward debt reduction.
The company’s longer-term strategy is increasingly centered on providing software to plumbers, contractors, salons, lawyers, accountants and other small local service businesses that need technology for customer acquisition and revenue growth.
The $142 million divestiture therefore marks both a portfolio simplification and a financial step in that broader transition, leaving Thryv more concentrated on its AI-powered SaaS platform while Carolwood assumes ownership of the established print directory operations.
KEY QUOTE:
“We are confident that concentrating our business strategy and resources on our AI-powered Growth Platform is the most effective path to maximize shareholder value. We believe divesting the Business to Carolwood is the best outcome for all stakeholders. Carolwood has vast experience acquiring and operating established businesses and is committed to our existing customer and employee relationships.”
Joe Walsh, Chief Executive Officer and Chairman of Thryv Holdings
