LONDON: Thoughtworks, a portfolio company in the Apax IX Fund, in which Apax Global Alpha Limited (AGA) is a limited partner, has announced that it has entered into a definitive agreement to be taken private by Apax Funds for $4.40 per share, which implies a total enterprise value of $1.75bn for Thoughtworks.
At the purchase price, the transaction represents an uplift of c.55% to AGA’s last Unaffected Valuation1 and an uplift of c.€9m (c.€0.02 per share) in the Adjusted Net Asset Value (“Adjusted NAV”) of AGA at 30 June 2024.
Note that these figures relate to AGA’s look-through position of Apax IX’s overall investment in Thoughtworks and are stated before taking into account any closing adjustments, fees, costs, and carried interest, and are translated based on the latest exchange rates available where applicable. The transaction is expected to close in Q4 2024, subject to customary closing conditions.
Thoughtworks is a global technology consultancy that integrates strategy, design, and engineering to drive digital innovation. Founded in 1993, Thoughtworks helps clients solve complex business problems with technology as the differentiator.
Apax IX acquired a majority stake in Thoughtworks in 2017, building on the Apax team’s expertise in digital transformation and tech-enabled services. In September 2021, Apax IX partially exited Thoughtworks via an IPO, having increased EBITDA fivefold and more than doubled the Company’s EBITDA margin between its initial investment and IPO.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to a diversified portfolio of private equity funds advised by Apax Partners as well as a smaller portfolio of primarily debt investments. In 2016, AGA made a commitment of c.$350m to Apax IX.