Thoma Bravo puts pedal to the metal with Nearmap; Avista aims to retrace Arcadia roadmap with WellSpring

Thoma Bravo continues its tech spending spree.

Good morning, Hubsters. MK Flynn here with Tech Tuesday on the Wire.

What summer slowdown? Thoma Bravo is having one heck of a month. The firm shows no signs of letting up in its quest to acquire tech companies throughout the world.

Yesterday, the tech-focused PE firm agreed to buy Nearmap, an Australian mapping company, for $730 million.

Based in Sydney, Nearmap’s “thought-leadership and momentum in aerial imagery, data and analytics” attracted the PE firm, said Thoma Bravo senior partner A.J. Rohde. “We believe Nearmap’s insights are increasingly mission-critical to enterprises and the use cases rapidly evolving, as evidenced by the company’s accelerating adoption with blue-chip customers in North America.”

“Our business model is proven in Australia and our ambition to continue to grow rapidly in North America aligns well with Thoma Bravo’s future ambitions for the business,” said Nearmap CEO Rob Newman. “We expect the location intelligence and aerial imaging market in North America to undergo change and consolidation over the next few years, which will present organic and inorganic opportunities for Nearmap.”

Thoma Bravo is currently vying for Darktrace, a UK cybersecurity provider, as PE Hub Europe editor Craig McGlashan reported. Last week, the Cambridge-based company confirmed it is in preliminary talks with the PE firm.

The firm has had a prolific August. Last week, Thoma Bravo closed a trio of transactions, including two cybersecurity deals. The firm completed its acquisition of SailPoint Technologies, an Austin-based provider of enterprise identity security, in an all-cash deal valued at about $6.9 billion. The PE firm wrapped up its sale of Barracuda Networks, a Campbell, California-based cybersecurity provider for small and medium sized enterprises, to KKR for a reported $4 billion. And Thoma Bravo closed the purchase of Mercell, a European provider of e-tendering and procurement systems based in Oslo.

We expect to see more European deals from the firm, which has offices in San Francisco, Chicago and Miami, and is expected to open one in London shortly.
First Aid. Earlier this morning, Avista Capital Partners announced that the New York-based PE firm has acquired WellSpring Consumer Healthcare, a developer and marketer of over-the-counter and personal care brands, from Audax Private Equity for undisclosed terms.

PE Hub reporter Aaron Weitzman spoke with Avista partner Alex Yu about the deal.
Founded in 1999 and based in Sarasota, Florida, WellSpring develops and markets a diversified portfolio of OTC brands in the US and Canada, with several that enjoy high market shares. Some of the brands include Bactine (first aid), Bonine (motion sickness), Emetrol (anti-nausea) and Glaxal Base (therapeutic skincare).

While the firm would not comment specifically about the growth and scale plans for the company during its hold period, Yu said to look at Avista’s prior ownership of Arcadia Consumer Healthcare, which was sold to Bansk Group last year, as a guide.

“Arcadia was a recognized leader in the consumer healthcare market for OTC medicines, premium vitamins and nutritional supplements before we got onboard,” Yu said. “During Avista’s ownership Arcadia made three significant add-on acquisitions (Nizoral, Kaopectate and Naturello) – so the firm has previously built a successful OTC platform, and it will likely follow this blueprint for Wellspring.”

For more, read the story.

Mood booster. “Personal care products are generally recession resistant,” John May, managing partner, CORE Industrial Partners, told PE Hub’s Obey Martin Manayiti.
CORE portfolio company Arizona Natural Resources makes hair care, skin care, fragrance and cosmetic products. The Chicago PE firm invested in the Phoenix-based company back in 2020. Earlier this month, ANR announced the acquisition of Contract Filling, a fragrance and deodorant manufacturer based in Cedar Grove, New Jersey.
“What we are finding is that buyers are buying different fragrances for different moods, whereas it used to be more of a gifting category,” May said.

He continued: “As the consumer is bringing more individualization into their buying habits and using it as stress relief, this business and this category continues to grow. It did really well in the last recession, and we are seeing the momentum continue.”

See the full story.

On that upbeat note, I’ll sign off. Buyouts’ Chris Witkowsky writes Wednesday’s Wire, and I’ll be back on Thursday.

Until then, happy dealmaking,