Private equity’s public markets exits on the up, OMERs’ deal for Audax’s Gastro Health scores around $950mn EV, Thoma Bravo backs PDFTron

SPACs slow down while Gastro Health commands a mid-$900 million value.

Happy Friday, everybody!

Exit rush: We’re seeing a big slow down in SPAC issuances, as everyone knows, but that pullback will take time to be felt in the public markets.

Among the 106 global PE executives surveyed by EY in their 2021 Global Private Equity Divestment Study, half of them will look to exit through public markets in the next 18 to 24 months.

Following talks of increased regulations, the SPAC hype started to cool off with only 13 deals announced in April versus 109 in March, according to Dealogic. But a record number of SPACs were issued in Q1 – 300 IPOs totaling $97 billion – that are yet to do deals. Pointing to money in search of target deals, Pete Witte, EY global private equity lead analyst, explained, “you will see the impact of the drop off in [about] two years.”

Acquisition candidates with strong ESG record’s are also poised to to benefit from more buyer interest and valuation premiums, EY writes. Karishma Vanjani with PE Hub has all the deets.

PPM resurgence: Few physician practice management platform assets traded hands in 2020, with the women’s healthcare market standing out as an exception. (Remember Unified Women’s Healthcare and Women’s Care Enterprises?) This year, the tides have turned, and we’re seeing a proliferation of exits and scale assets coming or returning to market across the spectrum – be it physical therapy, dental, or gastroenterology.

On the heels of OMERS Private Equity’s announcement to buy Gastro Health from Audax Private Equity, sources familiar with the deal terms told PE Hub the deal commanded an enterprise value of around $950 million. That translates to a 16x-plus EBITDA multiple, sources said. Read my story for more detail.

The exit is the second strong outcome for Audax in recent weeks, as the Boston firm sold Axia Women’s Health to Partners Group earlier this month at a total enterprise value of just below $800 million, a source familiar with the matter told PE Hub.

What specialty will dominate PPM dealmaking this year? Write to me at springle@buyoutsinsider.com.

Tech: In today’s tech news, prolific software investor Thoma Bravo strikes again. The firm made a strategic growth investment in PDFTron Systems, whose document processing platform provides organizations with a secure, cost-effective, and reliable way to embed advanced document functionality within their software applications.

According to Stax Inc., an independent strategy consulting firm, the B2B Document Processing market represents a total addressable market (TAM) of about $22 billion and is still in the early innings of commercial adoption, the announcement said.

Existing investor Silversmith Capital Partners will remain invested. Read PE Hub’s brief on the deal.

That’s it! Have a great weekend, and in the meantime, hit me up with any thoughts, feedback, or tips at springle@buyoutsinsider.com.