Thoma Bravo preps for potential $2bn-plus sale of Imprivata

The Chicago buyout firm took the healthcare IT security company private in a $544m transaction in 2019.

Thoma Bravo is evaluating the sale of Imprivata, which helps healthcare providers protect patient information, according to six people familiar with the situation.

Goldman Sachs and William Blair have been engaged to advise on an upcoming process, some of the people said.

A formal process has not launched, the people said, but is expected to get underway in the next two to three weeks, one of the people said.

The company is likely to command north of $2 billion in a potential sale, some of the people said. Imprivata posted approximately $100 million in 2019 revenue, some of the sources said, while a fourth placed estimated 2020 EBITDA at approximately $140 million.

The sellers likely want a high teens to 20x EBITDA multiple, one of the people said.

Imprivata has received significant inbound interest from the private equity community ahead of the auction, however, strategic interest is less obvious, sources said. One person speculated the company could garner interest from large players that play in IT security and authentication and want to get into healthcare.

Imprivata, headquartered in Lexington, Massachusetts, provides authentication, identity and access tools that are tailored to healthcare providers. Its goal is to protect patient information, while enabling healthcare organizations to access, communicate and transact patient information securely and conveniently.

Led by CEO Gus Malezis, Imprivata has over 1,900 healthcare customers worldwide, with over 6 million users across 45 countries.

From a PE perspective, different sponsors are taking different views on how and where the company will expand in its next phase of growth, one source noted.

Just last week, the company announced its acquisition of GroundControl Solutions, which makes automation software specializing in Apple devices. In October 2017, it bought Identity and Access Management Business of Caradigm.

Chicago-headquartered Thoma Bravo appears set to make out well on its less than four-year-old investment. The buyout shop completed its take-private of Imprivata in September 2016, acquiring the company in a $544 million transaction.

Thoma Bravo, Imprivata and Goldman declined to comment. William Blair didn’t return PE Hub’s request for comment.

Action Item: Check out Thoma Bravo’s latest Form ADV: https://bit.ly/2tvqJ06