Thoma Bravo is exploring options including a potential sale of Cority that it hopes will value the sustainability compliance software maker at about $2 billion, including debt, according to people familiar with the matter.
The technology-focused buyout firm has tapped Goldman Sachs to run a sale process for Cority, which could attract interest from other private equity firms, the sources said, requesting anonymity as the discussions are confidential.
Thoma Bravo is hoping to command a valuation for Cority equivalent to more than 20 times the company’s 12-month earnings before interest, taxes, depreciation, and amortization (EBITDA) of about $90 million, the sources said, cautioning that no deal is guaranteed.
Thoma Bravo and Goldman Sachs declined to comment, while Cority did not respond to a request for comment.
In recent years, compliance software makers have attracted interest from private equity firms, as large companies have ramped up technology spending on risk management and protection of supply chains. In April, EQT acquired Avetta from Welsh, Carson, Anderson & Stowe for about $3 billion, including debt.
Toronto, Canada-based Cority is a provider of software that is used by companies for tracking their progress towards environmental, social, and governance (ESG) efforts. Its software is also used to monitor employees’ health, managing potential risk factors, and regulatory compliance.
Cority has over 1,500 customers in 120 countries across industries such as healthcare, aerospace & defense, manufacturing, and energy & utilities, according to its website. It counts large corporations including Merck, Volvo, Dow Chemical, Siemens, and Rio Tinto among its clients.
Chicago-based Thoma Bravo, which has roughly $142 billion in assets under management, is one of the most prolific dealmakers in the software industry.
Earlier this year, Thoma Bravo took software maker Everbridge private in a deal worth about $1.8 billion. In July, the buyout firm sold education software firm Instructure to KKR for $4.8 billion.
