The deal with Thoma Bravo enables the California-based publicly-listed company to go private

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Medallia agrees to be acquired by Thoma Bravo. (Credit: Tumisu from Pixabay)

Software investment firm Thoma Bravo has agreed to acquire Medallia, a US-based customer and employee experience management company, for $6.4bn in an all-cash deal.

Founded in 2001, Medallia offers software-as-a-service (SaaS) customer experience management (CEM) and employee experience management software. It caters to hospitality, financial services, retail, high-tech, and business-to-business (B2B) firms around the world.

The company had developed a SaaS platform called the Medallia Experience Cloud. By combining human and machine learning, the platform provides customer insights and makes them actionable to all the roles across organisations.

The deal with Thoma Bravo enables the California-based publicly-listed company to go private.

Under the terms of the deal, Medallia’s shareholders will be offered $34 per share in cash to tender their shares in the company to Thoma Bravo.

The deal is being backed by Medallia’s directors and executive officers, who have a combined stake of around 34% in the company.

Thoma Bravo managing partner Scott Crabill said: “Medallia has positioned itself at the forefront of the experience management market with a best-in-class SaaS platform that leverages proprietary AI to help companies better understand their customers and employees and drive meaningful business growth at scale.

“Medallia’s ability to provide personalised and predictive insights across every channel and to companies of all sizes has become mission-critical in a rapidly expanding universe of structured and unstructured data, where more and more business is transacted digitally.”

As a privately held company, Medallia is expected to get additional resources and more flexibility to build on its leadership and grow its customer impact.

Medallia president and CEO Leslie Stretch said: “Since becoming a public company in 2019, we have made significant progress bolstering our leadership position in experience management. Today, Medallia benefits from a differentiated portfolio of cloud technology solutions and an expansive, loyal customer base across a diverse set of industry verticals and geographies.

“I look forward to our continued outstanding work in support of our customers. Furthermore, we are eager to build on our success and begin the next phase of differentiated growth, and we believe that becoming a private company represents the best opportunity to do just that.”

The deal, which is subject to approval from Medallia’s shareholders, regulatory approvals, and other customary closing conditions, is expected to close this year.

Earlier this month, Thoma Bravo signed a $6.6bn deal to acquire e-commerce shipping software solutions provider