Thoma Bravo strikes $6.4bn take-private deal for Medallia, The Jordan Company makes third dental investment with Dental365

Thoma Bravo continues deal tear with Medallia and The Jordan Co buys Dental365.

Morning, everybody!

As the summer M&A market remains as active as ever, Thoma Bravo is one name that has consistently dominated headlines. Proving a force to reckon with, again, the firm this morning announced what marks the tech specialist’s sixth signed or closed take private this year alone. That equates to nearly $40 billion in combined deal value.

So what’s the deal? The technology-focused buyout firm is buying Medallia, a leader in customer and employee experience. The all-cash deal is valued at $6.4 billion, representing a 20 percent premium over the company’s closing share price on June 10, the last full trading day before press reports of a sale surfaced. Vista Equity Partners was also reportedly in the running for the software-as-a-service business.

For Thoma Bravo, Medallia comes fresh on the heels of its announced $6.6 billion deal for Stamps.com and a $12.3 billion deal for Proofpoint, announced in April. In 2020 alone, Thoma Bravo completed 58 software-focused transactions on the buy and sell side that represented $30 billion in combined enterprise value.

Read more on the Medallia deal on PE Hub.

Investors’ sweet tooth: Be it general dentistry, orthodontics, dental implants, and on the horizon, I’m told, endodontics (which focuses on treatment for the root canal) — the dental category is back in action this year from an investment perspective.

Further evidence just in: The Jordan Company (TJC) is buying Dental365 in a transaction valuing the dental services organization at $440 million, three people familiar with the deal told PE Hub. The business marketed approximately $30 million of EBITDA, which implies the pending deal is valued at around 14.5x EBITDA, they said.

Based upon the dentistry platform’s current financials, Dental365 appears to mark what will be a huge outcome for existing investor Regal Healthcare Capital Partners, which targets businesses producing just $2 million to $10 million of EBITDA.

Regal HCP was launched by Jon Santemma, the former global head of healthcare investment banking at Jefferies, and industry entrepreneur Dr. David Kim, whose background includes co-founding CityMD’s predecessor Premier Care Urgent Care.
This is TJC’s first healthcare platform investment since mid-2019, but it certainly knows dental. It currently owns dental supplier Young Innovations, which it bought from Linden Capital Partners in 2017 in a deal valued just below $800 million, PE Hub wrote. It also owned Zest Anchors, a maker of overdenture attachments, several years back.

Read my full report on Dental365 on PE Hub.

In other brewing dental activity, I wrote last week that Linden, another active investor in the space, is about to kick off a sale process for Smile Doctors, the country’s largest and fastest-growing orthodontics-focused dental services organization. I’m told marketing materials for the business are now distributed. Also coming to market this year… US Oral Surgery Management, backed by RiverGlade Partners, whose founding members spun out from Sterling Partners in 2017, and Thurston Group, PE Hub wrote previously.

In big trades this year, Harvest Partners won a competitive process for Berkshire Partners’ Affordable Dental in a deal valuing the the country’s largest dental services organization specializing in tooth replacement services at a whopping $2.7 billion, I wrote.

That’s it for me! Have a great week ahead everyone, and as always, hit me up at springle@buyoutsinsider.com with any feedback, tips or just to say hello!