Thoma Bravo to sell T2 Systems for $347m

Verra Mobility has agreed to acquire T2 Systems from Thoma Bravo for $347 million.

Verra Mobility has agreed to acquire T2 Systems from Thoma Bravo for $347 million. T2 Systems is a provider of parking solutions in North America.

PRESS RELEASE

MESA, Ariz., Nov. 2, 2021 /PRNewswire/ — Verra Mobility (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today that it has signed an agreement to acquire privately held T2 Systems from leading software investment firm Thoma Bravo for $347 million on a cash-free and debt-free basis, plus an additional up to $9 million related to an impending asset acquisition by a wholly owned indirect subsidiary of T2 Systems. T2 Systems is a leading provider of parking solutions in North America, with nearly $80 million in revenue and approximately $21 million in adjusted EBITDA expected in 2021.

Verra Mobility will fund the all-cash transaction with a combination of current cash balances and accordion features in existing debt. The transaction is expected to close by the end of the fourth quarter.

T2 Systems provides an integrated suite of parking software and hardware solutions to universities, municipalities, parking operators, healthcare facilities and transportation hubs. Verra Mobility plans to operate T2 Systems as a distinct business unit.

“This acquisition complements our portfolio of urban mobility technology and allows us to continue growing revenue while diversifying our customer base. At just under 3.7x leverage at the end of Q3, this allows us to put our significant cash flow back to work for investors,” said David Roberts, president and CEO, Verra Mobility. “With the rapid growth of ride-sharing and last-mile delivery, cities need innovative solutions to solve traffic issues and optimize curbside management. Verra Mobility’s photo enforcement solutions coupled with T2 Systems’ parking technology will put us in a strong position to help cities adapt to these emerging complexities.”

“The combination of our unified parking and mobility management platform and Verra Mobility’s expertise in intelligent transportation systems will help deliver a streamlined transportation experience,” said Adam Blake, CEO, T2 Systems. “We are grateful to the Thoma Bravo team and excited to join the Verra Mobility team as we continue to innovate and improve the customer experience.”

“We are proud of what we accomplished in partnership with Adam Blake and the entire T2 team over the past five years. Today the company has a broader product offering, improved operations, and a stronger base of customers,” said A.J. Rohde, a Senior Partner at Thoma Bravo.

“With T2 Systems’ leading technology platform and the support of their new strategic partner, Verra Mobility, we look forward to watching T2 during its next chapter of growth as the leading provider of parking technology solutions,” added Matt LoSardo, vice president at Thoma Bravo.

During Thoma Bravo’s ownership, T2 Systems significantly grew its recurring software revenue, closed two add-on acquisitions, signed an additional asset acquisition, and introduced several new products.

T2 Systems serves more than 1,900 customers with a wide range of parking management solutions that includes curbside management, mobile payments, contactless transactions, and transportation demand management. The company offers a centralized, open platform covering the entire parking and mobility ecosystem. The T2 Link™ unified platform provides customers with a central source to manage their entire parking operation including third-party integrations.

For more information about T2 Systems, please visit www.t2systems.com.

Shea & Company is acting as the exclusive financial advisor to T2 Systems and Thoma Bravo during the transaction.

About Verra Mobility
Verra Mobility (NASDAQ: VRRM) is committed to developing and using the latest in technology and data intelligence to help make transportation safer and easier. As a global company operating in more than 15 countries, Verra Mobility sits at the center of the mobility ecosystem – one that brings together vehicles, devices, information, and people to solve the most complex challenges faced by our customers and the constituencies they serve.