Thoma Bravo Acquires Business Planning Software Company Anaplan

Private equity firm Thoma Bravo is acquiring Anaplan and taking the business performance software maker private. The deal is valued at $10.7 billion, the companies indicated.

This is technology M&A deal number 285 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

Anaplan Software Capabilities, IT Consulting Partners

Anaplan develops Hyperblock software, which allows businesses to “contextualize real-time performance, and forecast future outcomes for faster, confident decisions,” the company asserts. Anaplan has over 175 partners and more than 1,900 customers worldwide.

Anaplan’s software is designed for multiple departments and use cases — including finance, sales, supply chain planning, HR and workforce and marketing. Multiple IT consulting firms have built custom solutions for Analplan. Examples include:

  • Sales performance management software for telecom service providers from Accenture;
  • Closed-loop marketing software from Deloitte;
  • Tax reporting software from EY; and
  • Supply chain optimization softare from Spaulding Ridge.

Anaplan Business Concerns

Anaplan was in growth mode ahead of the company sale to Thoma Bravo. Indeed, revenue was $162.7 million in Q4 of fiscal 2022, up nearly 33 percent from Q4 the previous year. Still, GAAP operating loss was $53.8 million during Q4 of fiscal 2022.

Orlandio Bravo, CEO, Thoma Bravo

However, Anaplan’s stock fell sharply in November 2021 amid Wall Street concerns about slowing growth rates for order billings and software subscriptions, Seeking Alpha noted on November 24, 2021.

Ironically, Thoma Bravo CEO Orlando Bravo in March 2022 warned that “growth at all costs” for software companies was over. During a CNBC interview, Bravo noted that “high growth” without near-term profit prospects equals a valuation discount on Wall Street.

Fast forward to the Thoma Bravo buyout offer, and Anaplan’s stock has jumped nearly 30 percent in pre-market trading, according to Seeking Alpha’s pre-market data for March 21, 2022.

Thoma Bravo Acquires Anaplan: Executive Perspectives

In a prepared statement about the deal, Anaplan Chairman & CEO Frank Calderoni said:

“We are thrilled to partner with Thoma Bravo to build on the strength of our innovative platform and capitalize on the massive opportunity and incredible demand we are seeing. This is a clear validation of our team’s outstanding work and the start of an exciting new chapter for Anaplan, our customers, and our partner ecosystem. We are confident that Thoma Bravo’s resources and insights will help us accelerate and scale our growth strategy.”

Added Holden Spaht, a managing partner at Thoma Bravo:

“Anaplan is a clear leader in Connected Planning, solving critical business priorities for the world’s largest enterprises as they implement strategic and complex digital transformations. We have followed Anaplan for years and have seen the incredible value they bring customers through their best-in-class planning platform. We look forward to leveraging Thoma Bravo’s extensive operational and investment expertise in enterprise software to support Anaplan in its future growth.”

Concluded Tara Gadgil, a partner at Thoma Bravo:

“Anaplan has built a tremendously successful business through product innovation and a rigorous approach to delivering value for their customers and partner ecosystem. We look forward to working closely with Anaplan’s talented and experienced team to continue delivering cloud-native SaaS solutions at scale.”

About Thoma Bravo

Thoma Bravo is one of the largest private equity firms in the world, with more than $103 billion in assets under management as of December 31, 2021, the company notes.

In addition to its enterprise software focus, Thoma Bravo has investments across the MSP software sector. Key holdings and ownership stakes include ConnectWise, Barracuda Networks, N-able and Sophos, just to name a few.

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