Thoma Bravo is considering various options, including a potential sale of Cority, which it aims to value at approximately $2 billion, including debt, according to sources familiar with the matter. The technology-focused private equity firm has engaged Goldman Sachs to oversee the sale process for Cority, which could attract interest from other private equity firms, the sources said on the condition of anonymity.
Thoma Bravo holds a majority stake in Cority, and ESG software making company. It is seeking a valuation for Cority that exceeds 20 times the company’s 12-month earnings before interest, taxes, depreciation, and amortization (EBITDA) of around $90 million, the sources added, noting that no deal is assured. Both Thoma Bravo and Goldman Sachs declined to comment, and Cority did not respond to requests for comment.
In recent years, compliance software companies have drawn interest from private equity firms as major corporations have increased spending on technology for risk management and supply chain protection. For example, EQT acquired Avetta from Welsh, Carson, Anderson & Stowe in April for about $3 billion, including debt.
Toronto-based Cority provides software that helps companies track their progress in environmental, social, and governance (ESG) initiatives. Its software is also used for monitoring employee health, managing potential risk factors, and ensuring regulatory compliance.
Cority serves over 1,500 customers in 120 countries across sectors including healthcare, aerospace and defense, manufacturing, and energy and utilities. Notable clients include Merck, Volvo, Dow Chemical, Siemens, and Rio Tinto.
Chicago-based Thoma Bravo, which manages approximately $142 billion in assets, is a prominent player in the software industry. Earlier this year, Thoma Bravo took Everbridge private in a deal valued at about $1.8 billion and sold education software firm Instructure to KKR in July for $4.8 billion.