PE Deals

Thoma Bravo and Sunstone to take UserTesting private for $1.3bn

When the deal closes, UserTesting will no longer trade on the New York Stock Exchange.

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  • The deal is expected to close in the first half of 2023
  • Thoma Bravo and Sunstone Partners intend to combine UserTesting and UserZoom, which Thoma Bravo acquired in April 2022
  • UserTesting’s CEO Andy MacMillan, will lead the combined company

Thoma Bravo and Sunstone Partners have agreed to acquire UserTesting, a provider of video-based human insight, in a take-private deal for $1.3 billion.

According to terms of the deal, UserTesting shareholders will get $7.50 per share.

Following the closing of the transaction, Thoma Bravo and Sunstone Partners intend to combine UserTesting and UserZoom, which Thoma Bravo acquired majority control of in April 2022. UserTesting’s CEO Andy MacMillan, will lead the combined company.

Also, when the deal is completed, which is expected in the first half of 2023,, UserTesting will no longer trade on the New York Stock Exchange.

“We are excited to bring together the complementary expertise of UserTesting and UserZoom to create a leading, integrated solution that delivers real-time, data-driven feedback to organizations globally,” said A.J. Rohde, a senior partner at Thoma Bravo, in a statement. “Our acquisition of UserTesting is a testament to our belief that customer experience is mission critical to organizations, and the combined company will be well-positioned to further market expansion, accelerate innovation, and provide even greater insights to its customers. We look forward to leveraging the deep experience we have cultivated in the customer experience and user experience space to help the combined company capture the tremendous growth opportunities ahead.”

Morgan Stanley serving as financial advisor to UserTesting while Fenwick & West LLP is serving as legal counsel. Kirkland & Ellis LLP is serving as legal counsel to Thoma Bravo and Goodwin Procter LLP is serving as legal counsel to Sunstone Partners.

UserTesting is headquartered in San Francisco, California.

Thoma Bravo has more than $122 billion in assets under management as of June 30, 2022.

Sunstone Partners invests in technology-enabled services and software businesses. Sunstone Partners first invested in Userzoom in 2016 and remains a significant minority owner. Founded in 2015, the firm has over $1.7 billion committed to its three funds.