Kind of A Big Deal: Thoma Bravo Earns 4x On Datatel Sale
Thoma Bravo this week infused the stale exit market with fresh air, earning a 4x return on its investment in Datatel, a higher education software service provider. After a four-year ownership, the buyout shop sold Datatel to Hellman & Friedman and JMI Equity. Terms weren't disclosed, but a source familiar with the situation said the deal was valued at $570 million, earning Thoma Bravo a 4x return on one of the largest investments from the firm's seventh fund. Under Thoma Bravo's ownership, Datatel doubled its earnings and used its cash flow to pay down debt organically. Meanwhile, Thoma Bravo took a $124 million dividend recap in 2006. I spoke with Orlando Bravo, managing partner of Thoma Bravo, about selling in an exit draught, criticism of sponsor-to-sponsor deals and the importance of "high quality revenue." Get the Q&A after the jump...
