Thoma Bravo Nears Agreement to Hand Medallia to Lenders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: seekingalpha
- Equity Loss: Thoma Bravo and its co-investors, who acquired Medallia for $6.4 billion in 2021, are nearing a deal to hand the company over to lenders, which is expected to erase $5.1 billion in equity, highlighting the severity of the investment failure.
- Debt Pressure: Medallia is burdened with $3 billion in debt owed to Apollo, Blackstone, KKR, and Antares Capital, exacerbating its financial difficulties and impacting operational capabilities.
- Market Reaction: Although Thoma Bravo, Blackstone, and KKR declined to comment, the market is rife with uncertainty regarding Medallia's future, which could lead to diminished investor confidence and negatively affect its stock performance.
- Industry Impact: This transaction may prompt a reevaluation of the risks associated with private equity firms in high-leverage acquisitions, particularly in an uncertain economic environment, potentially influencing the structure and execution of similar deals in the future.
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Analyst Views on BX
Wall Street analysts forecast BX stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 122.330
Low
166.00
Averages
176.60
High
205.00
Current: 122.330
Low
166.00
Averages
176.60
High
205.00
About BX
Blackstone Inc. is an alternative asset manager. Its asset management includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries, and hedge funds. Its Real Estate segment comprises its management of opportunistic real estate funds, Core+ real estate funds, and real estate debt strategies. Its Private Equity segment includes its management of flagship Corporate Private Equity funds, sector and geographically focused Corporate Private Equity funds, core private equity funds, an investment platform, and others. Its Credit & Insurance segment consists of Blackstone Credit & Insurance, which is organized into three overarching strategies: private corporate credit, liquid corporate credit and infrastructure and asset-based credit. Its Multi-Asset Investing segment is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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