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Apax Partners to Take Thoughtworks Private in $1.75 Billion Deal

Management Consulting

Business Honor
09 August, 2024

This move comes roughly three years after Thoughtworks went public and amid a challenging financial period for the company

Apax Partners, the London-based private equity firm, has reached an agreement to acquire Thoughtworks, a Chicago-based technology consulting firm, in a $1.75 billion deal. The transaction, expected to close in the fourth quarter of 2024, will see Thoughtworks transition from a publicly traded company to a privately held entity. Lazard served as the financial advisor to Thoughtworks for this transaction.

This move comes roughly three years after Thoughtworks went public and amid a challenging financial period for the company. Since January 2022, Thoughtworks’ stock has plummeted by 87%, leading to significant restructuring efforts. The firm plans to cut approximately 7% of its 10,500-person workforce as part of its cost reduction strategy. Its recent second quarter results reflected a 12.4% decline in revenue year-over-year, totaling $251.7 million. Apax will pay $4.40 per share for all outstanding Thoughtworks common stock not already owned, reflecting a 30% premium over the closing price on August 2, 2024.Apax has been a strategic partner for Thoughtworks, and both parties anticipate that the shift to private ownership will enable a renewed focus on long-term growth and strategic investments.

Thoughtworks CEO Mike Sutcliff expressed optimism for the future, stating that the company intends to make the required long-term investments and further its mission with Apax's ongoing support. Rohan Haldea of Apax echoed this sentiment, highlighting the benefits of private ownership in facilitating growth and realignment.