Thoma Bravo Backs $27M Offer For IntrawareBy Daniel Hausmann Technology-10/21/2008
Thoma Bravo LLC is backing the $27 million take-private deal for Intraware Inc. by its portfolio company Acresso Software Inc.
The deal offers $4 per share for more than 6.3 million Intraware shares.
Thoma Bravo will provide some, but not all the equity for the deal, according to Seth Boro, a firm principal. Acresso is using existing company credit facilities to finance part of the transaction.
Both companies make entitlement and licensing software, but while Intraware's product is a software-as-a-service product, Acresso's FLEXnet Suite is a hosted offering. Intraware's customers include International Business Machines Corp., EMC Corp. and Sybase Inc. Acresso also counts IBM as a customer, along with Lockheed Martin Corp. and Boeing Co., among others.
It's the first add-on deal for Acresso, which Thoma Bravo acquired earlier this year from Macrovision Corp. for $200 million, and the firm plans to grow the company further through additional acquisitions.
Boro declined to say specifically how well the combined businesses are expected to perform, but did say the combined companies would be profitable. Orinda, Calif.-based Intraware generated $6.6 million in revenue and posted a $328,000 net loss for the six months ended Aug. 31. For a similar period in 2007, the company generated $5.9 million in revenue and posted a $323,000 loss.
Schaumburg, Ill.-based Acresso generated $112.9 million in revenue and $43.7 million in operating income in 2007, while it was still part of Macrovision.
Intraware's shares closed up yesterday on news of the deal, rising 19% on Nasdaq to close at $3.69.
The firm is currently raising Thoma Bravo Fund IX LP, which targets $800 million. The firm held a second close at $600 million earlier this year. A person familiar with Fund IX said it's now roughly 97% of the way to its target.