Thoughtworks Taken Private by Apax Funds in a $1.75 Billion Cash Deal

Technology consultancy firm Thoughtworks Holding Inc. (TWKS) entered a deal on August 5, 2024, with Apax Partners LLP to be taken private in an all-cash deal valued at $1.75 billion.

Deal Structure:

As per the agreement’s terms, an affiliate of funds advised by Apax Partners will purchase all of the outstanding shares of Thoughtworks for $4.40 per share, representing a premium of 29.79% from the stock’s last close.

Company Profile:

Thoughtworks is a global technology consulting firm that combines strategy, design, and engineering to help businesses solve problems and innovate digitally.

Apax Partners is a global private equity firm that has been around for over 40 years. They invest in companies in four main areas: Tech, Services, Healthcare, and Consumer, and have managed funds totaling over $60 billion.

Deal Details and Timeline:

The deal is anticipated to close in the fourth quarter of this year. Thoughtworks’ current Price/Sales (TTM) ratio is 1.01, below the sector median of 2.86.

Apax stated that it plans to finance the deal with fully committed equity and noted that the transaction is not subject to any financing conditions.

In May 2023, reports of a consortium backed by buyout firm Apax Partners considering a potential bid for Thoughtworks had caused the share price of the tech consultancy firm to surge by 17.68% to $7.32.

Deal Metrics:

For further details about this acquisition, please visit the Deal Metrics page here:

Deal Metrics for the acquisition of Thoughtworks Holding Inc. (TWKS) by Apax Partners LLP

The Deal Metrics page for each merger or acquisition includes:

• A spread history chart of the merger from announcement through eventual completion or failure.
• Key events throughout the merger process, including the expiration of the HSR period, regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates.
• Among other details.

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Editor’s Note: Baranjot Kaur contributed to this article