Thoma Bravo is a successor to the firm of Golder Thoma & Co. established in 1980. Golder Thoma originated the “consolidation” or “buy and build” investment strategy which sought to combine the best of venture investing with the best of leveraged buyouts by investing in a “platform” business in a fragmented industry and then working with management to transform it into a larger and more profitable business through internal growth and a series of strategic, industry consolidating acquisitions. Business Week magazine credited the firm with pioneering this strategy and Fortune magazine recognized the firm for combining the key elements of venture capital, leverage and “business building.”
Now in our 28th year, Thoma Bravo and its predecessor firms have applied and refined our investment strategy across many industries, in all economic cycles and through a series of nine private equity funds representing almost $4 billion of committed capital. We are pleased that over this period our investors have received a net annual internal rate of return (IRR) of about 28% on their investments in these funds.
Thoma Bravo has become particularly known for our investment experience and success in both the software and services business sectors, including vertical market software and business and financial services of various kinds. The companies below are representative of the firm’s successful investment history over the last three decades:
1980s
Paging Network, Inc.
A global provider of wireless communications services formed by a Thoma Bravo partner and a telecommunications executive. The company grew to become the world's largest wireless communications company with more than 10 million pagers in service, successfully went public and reached a total market value of more than $1 billion dollars. Although the paging business later was overtaken by cellular telephone service, the initial $8 million investment in PageNet returned more than $700 million in cash and stock.
1990s
American Income Holding, Inc.
A marketer and underwriter of individual supplemental life insurance and accident and health insurance for members of labor and credit unions. The company was acquired in one of the first going-private leveraged acquisitions of a public life insurance company. With an increase in sales of new insurance policies, improvements in home office productivity and greater control of overhead, earnings subsequently grew more than 200%. The company went public again and traded on the New York Stock Exchange until it was sold to Torchmark Corporation for more than $500 million.
Global Imaging Systems, Inc.
A provider of digital office imaging solutions, including the sale and service of copiers, fax machines and printers, electronic presentation systems and network integration and management services, formed by a Thoma Bravo partner and an industry executive. The company went on to complete more than 100 acquisitions and become a leader in its field with more than $600 million in revenue. After a successful public offering, the company was sold to Xerox Corporation in a $1.5 billion transaction. See: www.global-imaging.com.
2000s
LECG Corporation
An expert services firm providing independent expert testimony, original authoritative studies, and strategic advice and consulting to major corporations, law firms, governments and agencies around the world. Thoma Bravo partnered with the founder of LECG to re-acquire it from a company to which it had been sold and then supported its growth through the acquisition of additional expert staff for the expansion of the business worldwide. Thoma Bravo also assisted the company in completing a successful IPO and continuing its growth as an attractive public company. See: www.lecg.com.
Prophet21, Inc.
A provider of enterprise software and services to the durable goods distribution market. Thoma Bravo led the going-private acquisition of Prophet21 and then worked closely with the company to add expertise to its Board, improve its operating margins, and pursue an aggressive acquisition program that resulted in seven add-on acquisitions. As a result, the company's revenue doubled and earnings increased 4-fold in less than three years. Through a recapitalization and a subsequent sale of the business, Thoma Bravo earned almost five times its investment. See: www.distribution.activant.com/
VECTORsgi, Inc.
A provider of financial transaction processing, electronic payments, image exchange, item processing, dispute resolution, and e-commerce solutions for financial institutions. Thoma Bravo partnered with management to acquire the business that was the Banking Systems Division of Sterling Commerce and then worked with management to create a Board that included industry experts with whom the firm had a strong relationship; implement a number of operating improvements; and complete an acquisition that enhanced the product and service offerings of the company. VECTORsgi subsequently was sold to Metavante Corporation, the financial technology subsidiary of Marshall & Ilsley Corporation (NYSE: MI), in a transaction that earned an internal rate of return (IRR) of more than 125%. See: http://www.metavanteimage.com.