Thoma Bravo and Silver Lake have bid for J.D. Power, an automotive marketing company backed by Chinese buyout firm XIO Group, sources familiar with the process told Buyouts.
XIO Group is accepting second-round bids for the company, and two tech-focused buyout firms are in the mix, the people said. Evercore is said to be advising the company on the process.
Thoma Bravo bid for J.D. Power through its portfolio company Autodata Solutions Group, which it acquired in May. The firm is also one of the few that can afford the hefty valuation that XIO Group is seeking, they said.
XIO wants to sell the business for up to 19x J.D. Power’s Ebitda, or $2.4 billion, the sources said. J.D. Power generated nearly $125 million Ebitda and $370 million in revenue, they said. Silver Lake, another bidder, is “pushing hard” for J.D. Power, one source said. GTCR, which bid 13x Ebitda in the first round, dropped out of the process, another source said.
J.D. Power, of Costa Mesa, California, a U.S. customer survey and car ratings company, provides consumer insights, advisory services and data and analytics to companies.
Thoma Bravo raised $12.6 billion for its latest flagship in January 2019, Reuters reported. Thoma Bravo Fund XII closed on $7.6 billion in 2016 while Fund XI weighed in at $3.65 billion. Thoma Bravo, which manages more than $30 billion, is focused on investments in application and infrastructure software and technology-enabled services.
In May, Buyouts reported that Silver Lake raised $2.5 billion for its first ever credit and structured equity fund that will make non-control investments in tech companies, citing sources. In April, Buyouts reported that Silver Lake was said to be targeting $750 million for third tech-growth credit fund.
Silver Lake, with more than $43 billion, is focused on technology investments globally. Reuters first reported J.D. Power’s sale in May.
Thoma Bravo and J.D. Power declined to comment for the story. Silver Lake and XIO Group did not return request for comment before press time.
Action Item: Contact investor relations at XIO Group.