Thoma Bravo starts sale process for Continuum

  • Firm bought Continuum from Summit Partners in 2017
  • Investment came out of Thoma Bravo Discover Fund
  • Thoma Bravo is accepting first-round bids

Thoma Bravo has put Continuum on the block after a two-year hold, three sources familiar with the deal told Buyouts.

The process is in the early stages, people said. Thoma Bravo is accepting first-round bids for Continuum, sources said. It’s unclear when the offers are due.

UBS is advising Thoma Bravo on the sale, the people said.

Continuum is the Boston global IT management platform provider for managed IT service providers. Its platform offers remote monitoring and management, disaster recovery and security offerings for small and medium-sized clients.

The managed IT service model has a fair amount of interest in the market, one source familiar with the business said. Thoma Bravo may have received an inbound offer that kickstarted a formal process in pursuit of a higher bid, two people said.

Continuum is expected to fetch $800 million to $900 million, sources said.

The firm acquired Continuum from Summit Partners in 2016. At that time, the transaction was supported by $197 million in financing arranged by Carlyle GroupTCG BDCGoldman Sachs (GSAM Credit Alternatives), Goldman Sachs BDC and Goldman Sachs Middle Market Lending, according to PitchBook.

Thoma Bravo used its Discover Fund, which closed in early 2016 on its hard cap of $1.07 billion, to invest in Continuum. Discover Fund focuses on growth-oriented software and technology companies in the lower-middle market.

In April 2018, the second Discover pool closed on its $2.4 billion hard cap. Like its predecessor, Fund II is focused on middle-market software.

Thoma Bravo declined comment. Continuum could not be reached for comment.

Action Item: Check out Thoma Bravo’s Form ADV here: https://bit.ly/2K2dfQo.