Breaking News: Private Equity Deals Transforming Tech Sector in 2024
In 2024, the private equity realm is buzzing with activity, offering a lucrative exit strategy for technology startups and scale-ups. TechCrunch recently reported that EQT acquired a majority stake in cybersecurity firm Acronis at a valuation of $4 billion. This follows EQT's purchase of enterprise middleware company WSO2 for $600 million.
Private equity firms are also active in the public markets, with 97 take-private deals already in 2024. Of these, 46 are in the technology sector, focusing on product-centric companies valued at $1 billion or more.
Let's take a closer look at some of the most significant deals:
- Adevinta: Acquired for $13 billion by Permira and Blackstone, this online marketplace was previously spun out by Norwegian media group Schibsted.
- Squarespace: Permira acquired this website builder for $6.9 billion in an all-cash deal, following its IPO on the NYSE in 2021.
- Nuvei: Taken private by Advent International for $6.3 billion, this Canadian fintech company provides payment processing services.
- PowerSchool: Bain Capital is acquiring this K-12 education software provider for $5.6 billion, after several ownership changes since its acquisition by Apple in 2001.
- Darktrace: Thoma Bravo is leading the $5.3 billion deal to take this UK cybersecurity company private, following its IPO in 2021.
- Instructure: KKR is acquiring this educational technology company for $4.8 billion, taking it private once again.
- Alteryx: Clearlake Capital Group and Insight Partners completed the $4.4 billion acquisition of this data analytics software provider in March.
- EngageSmart: Vista Equity Partners acquired this customer engagement software provider for $4 billion, leading to the creation of InvoiceCloud and SimplePractice.
- Rover: Blackstone took this pet-sitting marketplace private for $2.3 billion in February.
- Everbridge: Thoma Bravo acquired this critical event management software company for $1.8 billion in July.
- Kahoot: Goldman Sachs Asset Management led the $1.7 billion acquisition of this gamified e-learning platform in January.
- Model N: Vista Equity Partners completed the $1.25 billion acquisition of this pricing and compliance automation platform in June.
These deals highlight the growing trend of private equity firms reshaping the tech sector through strategic acquisitions. Investors and stakeholders should pay attention to these developments as they have the potential to impact the financial landscape significantly.