Private Equity News & Analysis

TCB to pay $200m for Macrovision software unit

Though its partners split ahead of respective fundraises, Thoma Cressey Bravo is still deploying capital from its eighth fund, which closed on $765 million in early 2006.

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Thoma Cressey Bravo, a US firm whose partners recently parted ways according to sector focus, will pay approximately $200 million (€137 million) for Macrovision’s Software Business Unit. The division’s products include FLEXnet and InstallShield, which help manage relationships between software providers and enterprises.

Orlando Bravo

Subject to regulatory approval, the transaction is expected to close on or before 1 April and will result in a stand-alone company, according to a statement. TCB managing partner Orlando Bravo said the new company will work to enhance customer value and growth.

The investment is being made from TCB’s eighth fund, which closed on $765 million in January 2006. A spokeswoman declined to say how much of the vehicle’s capital is left to deploy. “TCB Fund VIII will be fully invested or committed in the near future,” she said.

TCB’s partners split late last year ahead of respective fundraising. Bryan Cressey and Peter Ehrich formed the healthcare-focussed Cressey & Company, while Carl Thoma, along with Bravo, Lee Mitchell and Scott Crabill, rebranded as Thoma Bravo and will focus on software.

The TCB partners, known for their build-and-buy strategy, continue to work together on existing funds and share administrative resources accordingly.

Thoma and Cressey launched Thoma Cressey in 1997, after the pair split from Golder Thoma Cressey Rauner, which is presently known as GTCR Golder Rauner. Bravo's name was added to the firm last year.