A major private equity firm is preparing to surrender a troubled software company to its lenders following extended financial restructuring discussions, according to an insider with knowledge of the negotiations.
Thoma Bravo is close to finalizing a deal that would transfer control of Medallia Inc. to the company’s creditors, sources report. This transaction would eliminate $5.1 billion in equity investments made by Thoma Bravo and its partner investors, who acquired the customer service software business for $6.4 billion three years ago.
The software company has faced significant financial challenges in recent months, burdened by approximately $3 billion in outstanding debt owed to major financial institutions including Blackstone, KKR, and Apollo.
When contacted for comment, representatives from Thoma Bravo and KKR declined to provide statements. Apollo and Medallia did not respond to immediate requests for comment regarding the pending agreement.
