Thoma Bravo takes another identity management provider private; Huron Capital’s ExecFactor at work

Thoma Bravo is acquiring software firm ForgeRock in a take-private deal for about $2.3 billion.

Good morning, Hubsters.

MK Flynn here with today’s Wire. Let’s kick things off with a big deal, then move onto the middle market, then a quick look at emerging managers, and we’ll wrap up with dealmaking in Europe.

Tech Tuesday. Thoma Bravo just announced another take-private cybersecurity deal.
The tech-focused PE firm is buying digital identity management provider ForgeRock in an all-cash deal valued at about $2.3 billion.

“Identity-centric cybersecurity solutions are a critical enabler for businesses to digitally transform their operations, and ForgeRock’s solutions combine both the advanced security and customer usability needed in the market,” said Chip Virnig, a partner at Thoma Bravo, in a statement. “We look forward to partnering with ForgeRock to leverage our deep sector expertise and support the company to capitalize on this tremendous market opportunity.”

Identity management has been a theme in Thoma Bravo’s deals this year, as PE Hub has been reporting. In August, the firm announced a take-private deal for Ping Identity, in an all-cash transaction valued at about $2.8 billion. Also in August, Thoma Bravo closed the acquisition of SailPoint Technologies, which develops enterprise identity security software, in a take-private all-cash transaction worth $6.9 billion.

ExecFactor. This morning, Huron Capital announced the launch of a new platform company called Exigent, and PE Hub’s Aaron Weitzman broke the news in an exclusive interview with Huron’s Scott Hauncher and Mike Zukas.

Headquartered in Glenn Dale, Maryland, Exigent is focused on providing mechanical services – such as HVAC, plumbing, power, and energy efficiency – to large facilities in the education, healthcare, industrial, government and commercial sectors.

Exigent is the latest platform for Huron’s “ExecFactor” strategy. Huron defines the approach as a “proprietary, thematic investment strategy where we underwrite an industry and partner with an executive to deploy our build-and-build investment model.” The approach “brings together our sector focus, deep industry relationships, committed capital and repeatable buy-and-build approach to create a new platform investment.”

Recent ExecFactor investments include Sciens Building Solutions, a commercial fire and life safety company; Pueblo Mechanical & Controls, a commercial HVAC and plumbing services company; and Highstreet Insurance Partners, an insurance brokerage platform.

The foundational acquisition for Exigent is American Combustion Industries (ACI), which focuses on boilers, chillers and plumbing. ACI president Tim Kirlin will maintain an equity stake in Exigent and will join the company’s executive team.

“By leveraging years of experience building services businesses, we have developed a deep understanding of these industries, along with a repeatable playbook for execution and a network of executives and resources to help us succeed,” Hauncher told Aaron.

The vision for Exigent is to create “a super-regional leader that is focused on these critical systems for nonresidential markets,” according to Hauncher.

“What’s more mission-critical than keeping a hospital up and running? The systems that Exigent services not only impact the climate within the hospital but the hospital’s ability to sanitize equipment,” Zukas said. “Keeping the boiler up and running to provide steam heat is critical for hospitals. Exigent also services chillers in the summer and plans to add more services as it grows.”

Zukas continued: “Our plan is to start with ACI. Behind ACI, there are several other businesses in our pipeline that we are in discussions with. By deploying Huron’s ExecFactor buy-and-build strategy through Exigent, our goal is to build more of a one-stop shop. Eventually, we will expand beyond boilers and chillers in the hospital – maybe we move into power, or maybe we move into more plumbing. Hospitals are just one example where infrastructure is aging in those areas – they need upgrades as well as 24/7 repair/service work, which is what we are providing now and will continue to provide more of as we build the platform.”

Read the full story here.

Emerging managers. Buyouts is out with a report on emerging managers and the results of our recent survey on the topic.

“A volatile macroeconomic and geopolitical environment means many investors are pulling back on risk,” finds the report. “Meanwhile, the denominator effect is creating capital constraints, and an unrelenting wave of re-ups means LPs are being pushed to their limits.

All of which is resulting in a flight to the familiar and a punishingly tough fundraising environment for emerging managers,” according to the sixth annual Buyouts Emerging Manager Survey, conducted in partnership with Gen II Fund Services LLC.

You can read the full report on the emerging managers landing page.

Across the pond. Are you signed up to receive Dealflow, PE Hub Europe’s daily newsletter?
Today’s edition, written by PE Hub Europe editor Craig McGlashan, covers deals being done by KKR, Graphite Capital, Palatine and Triton Partners.

Click here to read the online version.

We launched PE Hub Europe over the summer, and we’re offering access to it for free this fall for a limited time only.

To receive all the news and insights in private equity-backed dealmaking in Europe, sign up for PE Hub Europe and Dealflow here.

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Buyouts’ Chris Witkowsky writes the Wire on Wednesdays, and I’ll be back with more on Thursday.

All the best until then,