Thoma Bravo Closes LANDesk Buy But Silent on Novell

Thoma Bravo, which is rumored to be bidding for Novell, has completed its buy of LANDesk Software.

Salt Lake City-based LANDesk provides systems lifecycle management, endpoint security and IT service management. The seller was Emerson Electric Co., which acquired LANDesk via its $1.2 billion buy of Avocent in 2009. Avocent itself bought LANDesk in 2006 for $416 million.

LANDesk’s software “lets corporate IT departments manage all endpoints, like PCs or mobile devices,” says Seth Boro, a Thoma Bravo principal.

The sale to Thoma Bravo, a San Francisco and Chicago buyout shop, closed yesterday. Financial terms were not announced. However, the unit reported sales of about $150 million in 2009. Thoma Bravo typically invests from $50 million to $100 million in its portfolio companies. The average is consistent with the LANDesk buy, a Thoma Bravo spokesman says.

LANDesk employs about 750 people. No job cuts are expected. Steve Daly, formerly the executive vice president and general manager of LANDesk, is CEO.

Boro declined to comment on the Novell rumors. Earlier this month, peHUB reported that Thoma Bravo was in talks to buy the non-LINUX business of Novell. Last week, my compadres at Reuters reported that the auction was facing setbacks and PE bidders, the natural buyers for Novell’s NetWare and identity management units, were unwilling to pay the high price that the software company wants.

The LANDesk deal is the latest for Thoma Bravo, which invests in mid-market technology and services companies. Thoma Bravo has been very active in the software sector. The PE firm recently bought SonicWall, a provider of IT security and data backup and recovery solutions for $717 million. In July, the firm also closed a $242 million buy of Double-Take Software and a separate $124 million deal for Entrust, a security company.

LANDesk will be used as platform to buy other companies, says Boro. He estimates that infrastructure software comprises about 50% of Thoma Bravo’s software portfolio. “We are planning further acquisitions,” Boro says.

The investment in LANDesk came from Thoma Bravo’s ninth fund, which raised $822.5 million in early 2008. Fund IX has made seven investments, including LANDesk, and is over 50% invested.

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