Thoma Bravo shuts down Imprivata process as covid-19 fears fuel market volatility

Imprivata, which helps healthcare providers protect patient information, was anticipated to command upwards of $2bn in a potential sale.

Thoma Bravo has called off its potential $2 billion-plus sale of Imprivata as coronavirus-related fears continue to weigh on global markets and economies, according to people familiar with the matter.

The auction for Imprivata, a healthcare-focused information security company, was shut down indefinitely at the start of the week, sources said. Indications of interest were submitted and the process’s second phase was just kicking off, according to one of the people. 

“Imprivata is and always has been focused on our employees, our customers and in delivering the world-class solutions our customers need for healthcare delivery,” Imprivata president and CEO Gus Malezis said in a statement to PE Hub. “This is more critical now than ever before given the unprecedented conditions. To this point, we’re [ensuring] our employees are in a safe operating environment and our customers are receiving the assistance they need and expect from Imprivata.”

Imprivata is one of many companies opting to postpone a potential sale. A large percentage of live processes have either been put on hold or shut down as dealmakers and investors try to hash out the severity of covid-19 impacts on financial markets and portfolio companies. 

For example, Curium, the CapVest Partners-backed nuclear medicine imaging company, called off its potential $3 billion sale earlier this week after final bids fell short of expectations, PE Hub reported. The company said the decision was made due to “extreme volatility and uncertainty in global financial markets in recent weeks, arising from the global covid-19 outbreak.”

PE Hub initially wrote in early February that Goldman Sachs and William Blair had been engaged to advise on a sale process for Imprivata.  

The auction was anticipated to produce a transaction valued north of $2 billion, 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.  

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

The company serves more than 1,900 healthcare customers worldwide, with over 6 million users across 45 countries.

Chicago-headquartered Thoma Bravo’s investment in Imprivata dates back less than four years. The buyout shop completed its take-private of Imprivata in September 2016, acquiring the company in a $544 million transaction. 

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

Action Item: Read more about the Curium process