Thoma Bravo seals $1.03bn carve-out

The Orlando Bravo-led firm’s second platform investment of 2013 comes as Thoma Bravo seeks $400m for a supplemental buyout fund that will invest alongside its Fund X.

Thoma Bravo will buy Intuit Financial Services, the digital banking unit of Nasdaq-listed Intuit, for about $1 billion. 

Intuit Financial Services provides services such as digital payments and mobile banking to financial institutions, “markets which should continue to see…growth”, said Holden Spaht, a partner at Thoma Bravo said in a statement. Intuit Financial Services, excluding two divisions that will remain with Intuit, generated revenue of about $205 million during fiscal 2012 and is expected to contribute revenue of roughly $325 million in fiscal 2013. 

Thoma Bravo is investing from its $1.25 billion Fund X that closed in early 2012. The firm also is in market with its Thoma Bravo Special Opportunities Fund I, targeting $400 million. That fund will be used to invest alongside Fund X “when additional funds are needed”, according to a spokesperson for the firm.

The investment in Intuit Financial Services comes just a week after Thoma Bravo took internet and mobile testing and monitoring company Keynote private for $395 million. The two transactions represent Thoma Bravo’s only platform investments of 2013. The firm has completed seven add-on acquisitions since 1 January. 

Thoma Bravo typically invests in companies with an enterprise value of between $100 million and $500 million, with a focus on software, business and financial services and education.

Founded in 1998, Thoma Bravo formed when Golder Thoma & Company split into two firms, GTCR Golder Rauner and Thoma Cressey Equity Partners – which was eventually renamed Thoma Bravo. The firm is led by Thoma, Bravo, Scott Crabill and Lee Mitchell and manages around $4 billion in private equity commitments.