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Home / Business / Thoma Bravo acquires ConnectWise for about $ 1.5 billion, ChannelE2E Estimates

Thoma Bravo acquires ConnectWise for about $ 1.5 billion, ChannelE2E Estimates



ConnectWise acquired by private equity firm Thoma Bravo for about $ 1.5 billion, ChannelE2E estimates. Jason Magee succeeds ConnectWise CEO Arnie Bellini. MSP partner focus, five-year strategy plan intact.

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Thoma Bravo acquires ConnectWise, the management and IT software firm. Financial terms were not disclosed. ChannelE2E however, estimates that Thoma Bravo paid about $ 1.5 billion to ConnectWise, according to our previous reporting, combined with previous IT Nation conference settings and other publicly available information.

Jason Magee succeeds ConnectWise CEO Arnie Bellini, who turns into an advisory role in the MSP (Managed IT Services Provider) software company. The agreement will close February 28, the companies say.

Thoma Bravo acquires ConnectWise: Complete coverage and analysis

Our complete analysis of the agreement includes:

  1. ConnectWise Acquired – Jason Magee and Arnie Bellini Explain why: An introductory interview explaining the path to this agreement, corporate transition, continued partner focus and some employee changes.
  2. New ConnectWise CEO Jason Magee: 10 Things to Know
  3. ConnectWise Founder Arnie Bellini: What He Learned
  4. ] ConnectWise Employees Receive $ 270 Million from Company Auction
  5. New ConnectWise Owner Thoma Bravo: 10 Things to know

Thoma Bravo acquires ConnectWise: The background

ChannelE2E suggested in a February 4 blog that the landmark agreement was imminent. The companies confirmed the agreement to ChannelE2E on February 19 under embargo, and announced the release of the buyout on February 25. Financial terms were not disclosed.

Thoma Bravo paid about $ 1.5 billion for ConnectWise, ChannelE2E estimates based on our research and long-term industry reporting. What is mathematics? Here are the clues:

  • ConnectWise did not notify the value of the agreement, but the company confirmed that $ 270 million from the sale will go to employee shareholders.
  • Earlier, Bellini was published under an IT Nation speech much of the company's shares are held by employees in relation to the company's founders. We believe that the relationship between ownership interests to the founders of the holdings has been stable since that time.
  • Additional background figures appear from this Tampa Bay Business Journal article from 2018.
  • Roll all the vague hints from us together, and

Thoma Bravo buys ConnectWise: Fast Facts

Some key facts about the deal, in According to Thoma Bravo and ConnectWise and Bellini:

  • The software company is still committed to success and growth in the driving partner.
  • The company will pursue organic growth and strategic acquisitions (although ConnectWise has no forthcoming M&A agreements scheduled, since the company still digests HTG and Sierra Group).
  • Main focus areas remain everything as a service, cyber security and partner education that enhances business performance.
  • Having led the business for 37 years, Arnie Bellini turns into an advisory role for the company.
  • President and COO Jason Magee changes to CEO.
  • ConnectWise's EBITDA rose over the last three years with an 81 percent compound annual growth rate (CAGR) and revenues had a 21 percent CAGR. Magee led the company's daily operations during this growth.
  • There are some cuts – about 110 jobs are eliminated, or about 10 percent of the workforce, ChannelE2E estimates – in the middle of the buyout. But the company is also looking to make around 70 approaches in several areas, including in a more aggressive pressure on SaaS and security.
  • The latest rumors about ConnectWise that potentially merge with peer Thoma Bravo companies (such as Continuum) are fake, Bellini ChannelE2E says.

Track all coverage on agreement here.


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