Apax IX agrees to acquire ThoughtWorks, Inc.
The Apax IX Fund (“Apax IX”) has today announced that it has reached a definitive agreement to acquire ThoughtWorks, Inc. (“ThoughtWorks”), a global software development and digital transformation consulting company.
Incorporated in 1993, ThoughtWorks has grown from a small group in Chicago to over 4,500 employees spread across 42 offices in 15 countries. The company has a differentiated, market-leading position in the growing software development market thanks to its best-in-class talent, history of being an innovative thought leader, and well-respected brand.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the investment expertise of Apax Partners through its investments in a diversified portfolio of private equity funds advised by Apax Partners as well as derived investments in debt and equity. In May 2016, AGA committed $350m to Apax IX.
Funds advised by Apax Partners to acquire ThoughtWorks, Inc.
Partnership creates uniquely positioned business able to tackle the most complex digital transformation challenges
Funds advised by Apax Partners (“Apax Funds”) have today announced a definitive agreement to acquire ThoughtWorks, Inc. (“ThoughtWorks”), a global software development and digital transformation consulting company. The transaction is subject to customary closing conditions and is expected to close in Q4 2017. Terms of the transaction were not disclosed.
Incorporated in 1993, ThoughtWorks has grown from a small group in Chicago to over 4,500 employees spread across 42 offices in 15 countries. The company, a pioneer in agile software development, has been at the forefront of software design and delivery since its inception. ThoughtWorks is dedicated to improving the way software is developed and has guided IT leaders and teams through enterprise-wide digital transformation, driving operational efficiencies and competitive advantage.
“Over a span of more than two decades ThoughtWorks has consistently developed and delivered cutting edge technology for our clients,” said Guo Xiao, CEO and President, ThoughtWorks. “Today we take our first step towards our next growth phase with Apax Partners. With our combined resources, we are uniquely positioned to help our clients tackle their most difficult challenges, enabling them to change their competitive position through technology.”
“Over the years, ThoughtWorks has gone through many iterations but what has been consistent is our commitment to software excellence. We credit this to having a combination of the most talented, passionate development teams, collaborative practices, and a culture of experimentation and innovation which blend to create a technology capability that is second to none,” said Dr. Rebecca Parsons, Chief Technology Officer, ThoughtWorks. “Together with Apax Partners, we remain committed to having technology at the core of everything we do while building a diverse, inclusive work environment.”
Salim Nathoo, a partner at Apax Partners, said: “Software and technological excellence are driving competitive advantage in the corporate marketplace more than ever before, putting agile and advanced development approaches in high demand. ThoughtWorks’ exceptionally talented employees, global footprint and reputation for technical excellence make it uniquely capable to tackle the most complex digital transformation problems. We see significant opportunities for the company to develop further and look forward to working alongside the existing management team as the company enters its next phase of growth.”
Rohan Haldea, a partner at Apax Partners, added: “We are impressed by the professionalism and expertise of the ThoughtWorks management team and fully support their vision which puts ThoughtWorks at the forefront of digital technology. We recognize ThoughtWorks’ success lies in its people and a culture that promotes diversity and inclusion. Furthermore, ThoughtWorks’ focus on innovation and customer impact have made it a thought leader in its industry. In partnership with ThoughtWorkers, we look to build upon the incredible foundation of the Company and keep the unique cultural fabric which underpins the firm.”
Apax Partners was advised by Credit Suisse (financial advisor), Kirkland & Ellis LLP (legal advisor) and E&Y (accounting advisor).
ThoughtWorks was advised by Goldman Sachs (exclusive financial advisor), Nixon Peabody (legal counsel) and KPMG (accounting advisor).
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About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment scheme incorporated as a non-cellular company that listed on the London Stock Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services Commission.
AGA’s objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses) including a dividend yield of 5% of Net Asset Value (NAV).
The investment policy of the Company is to make private equity investments in Apax Funds and Derived Investments which are investments in equities and debt derived from the insights gained via Apax Partners’ Private Equity activities. The Company’s portfolio is expected to be allocated in approximately equal proportions between Private Equity and Derived Investments, although the investment mix will fluctuate over time due to market conditions, investment opportunities, cash flow requirements, the dividend policy and other factors.
Further information regarding the Company and its publications are available on the Company’s website at www.apaxglobalalpha.com.
About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm. It operates globally and has more than 30 years of investing experience. Apax Partners has advised funds that total over €40 billion in aggregate as at 30 June 2017*. Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long_term equity financing to build and strengthen world_class companies. For further information about Apax Partners, please visit www.apax.com.
Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.
* Funds raised since 1981, commitments converted from fund currency to EUR at FX rates as at June 2017