Thoma Bravo hands Medallia to lenders in one of PE’s biggest losses

Thoma Bravo relinquished control of Medallia to its lenders on December 18, 2023, marking one of the largest losses for a private equity firm in recent history. A consortium led by Blackstone is set to take over the troubled software company, which had been acquired by Thoma Bravo for $6.4 billion in 2021. The deal signifies a significant write-down for Thoma Bravo, as Medallia's valuation has fallen considerably since its acquisition. The software company, specializing in customer experience management, has faced challenges in its financial performance, leading to this distressed debt restructuring. This transaction highlights the increasing risks in the private equity sector, particularly with leveraged buyouts of technology companies that have not met growth expectations. The new ownership structure under Blackstone aims to stabilize Medallia's operations and financial standing.