Technology consultancy Thoughtworks has agreed to an acquisition by Apax Partners in a deal valued at about $1.75bn.
The private equity firm will acquire all outstanding shares of Thoughtworks that it does not already own at $4.4 each, a 30% premium over the closing stock price on 2 August 2024.
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The purchase price also represents a 48% premium over the volume-weighted average price of Thoughtworks’ stock for the 30 days ending on that date.
Thoughtworks, which went public in September 2021, has seen its stock value plummet by 87% since the beginning of 2022.
The transaction has been approved by an affiliate of Apax funds, which is the majority stockholder of Thoughtworks, negating the need for further stockholder approval.
Separately, announcing its quarterly results, Thoughtworks revealed an expansion of the company’s previous restructuring plans.
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By GlobalDataThese plans aim to achieve additional savings between $85m and $95m, targeting total savings of $185m to $210m.
The restructuring, which is expected to be completed by the end of October, will affect approximately 6%-7% of the company’s global workforce.
This equates to about 630 to 735 employees, based on Thoughtworks’ headcount of over 10,500.
Once the acquisition is concluded, Thoughtworks will delist from NASDAQ and revert to a privately held company.
Thoughtworks CEO Mike Sutcliff said: “Apax has been a longstanding strategic partner for Thoughtworks. With their continued support, we plan to make the necessary long-term investments and advance our vision of being a stronger, strategic partner for our clients.”
Apax partner Rohan Haldea said: “We are deeply committed to Thoughtworks’ unique culture, its unwavering focus on technological excellence, and its mission of transforming the world through technology. We believe that it is in the interest of all stakeholders for the Company to return to private ownership to allow the organization to re-focus on growth.”
The expected closure of the transaction is in the fourth calendar quarter of 2024, subject to customary closing conditions.
