The technology sector continues to attract massive private equity (PE) investments, especially as more companies are opting to go private amid fluctuating market conditions. In 2024, several major take-private deals have shaped the tech landscape, marking a significant year for private equity-driven acquisitions. These take-private deals, involving software firms, fintech companies, and more, highlight the growing influence of private equity in reshaping technology companies. Here’s a look at the biggest take-private PE acquisitions so far in 2024.
1. Nuvei: $6.3 Billion
Canadian fintech company Nuvei was taken private by Advent International in a deal worth $6.3 billion. Nuvei, a provider of payment processing and risk management services, initially went public in 2021 but faced stock volatility. Advent International saw an opportunity to capitalize on the company’s growth potential and future scalability. The deal is set to close by late 2024 or early 2025.
2. PowerSchool: $5.6 Billion
PowerSchool, a major player in K-12 education software, is being taken private by Bain Capital in a deal valued at $5.6 billion. PowerSchool, originally acquired by Apple in 2001 and later sold to Pearson and Vista Equity Partners, has been through several ownership changes. This latest move sees Bain taking full control of the company, reflecting the growing trend of PE investments in educational technology.
3. Darktrace: $5.3 Billion
U.K.-based cybersecurity company Darktrace is being taken private by private equity giant Thoma Bravo in a deal valued at $5.3 billion. Darktrace, which went public on the London Stock Exchange in 2021, has been a key player in AI-driven cybersecurity solutions. Thoma Bravo’s acquisition signals continued interest in cybersecurity, a critical sector as digital threats grow more complex and pervasive.
4. Instructure: $4.8 Billion
Educational technology firm Instructure is also in the process of being taken private. After previously being acquired and later spun out by Thoma Bravo, Instructure was scooped up by KKR in a $4.8 billion deal. Instructure provides learning management systems like Canvas, which are widely used in educational institutions. KKR’s acquisition reinforces the value that PE firms see in the ed-tech space, particularly in the era of remote and hybrid learning.
5. Alteryx: $4.4 Billion
Alteryx, a data analytics software company, was taken private in a $4.4 billion deal led by Clearlake Capital Group and Insight Partners. Alteryx went public in 2017, reaching a market cap of $12 billion at its peak. However, a decline in stock value presented an attractive buyout opportunity for private equity, which saw potential in the company’s data analytics offerings, especially as demand for enterprise-level data tools continues to surge.
6. EngageSmart: $4 Billion
Customer engagement software provider EngageSmart was taken private in a $4 billion deal by Vista Equity Partners. EngageSmart had initially gone public in 2021, and this acquisition highlights the increasing interest in customer engagement and interaction technologies. The sector has seen heightened demand as businesses seek to improve digital customer experiences, making EngageSmart an attractive target for private equity.
7. CyberArk: $3.6 Billion
Thoma Bravo also took cybersecurity company CyberArk private in a $3.6 billion deal. CyberArk specializes in identity security and has grown in importance as organizations bolster their defenses against cyberattacks. With Thoma Bravo already having a strong foothold in the cybersecurity space, the acquisition of CyberArk further consolidates its position in the sector.
8. Avalara: $3.5 Billion
In another significant transaction, tax automation software provider Avalara was taken private by Vista Equity Partners in a deal valued at $3.5 billion. As businesses increasingly adopt cloud-based solutions for tax compliance, Avalara’s software has gained popularity, particularly among e-commerce companies and global enterprises. This acquisition aligns with Vista’s strategy of investing in mission-critical enterprise software.
9. Box: $3.2 Billion
Box, a cloud content management and file-sharing platform, was taken private in a $3.2 billion deal led by KKR. Box has been a staple in cloud-based document management for years, particularly among enterprises. KKR’s interest reflects the growing importance of secure, scalable cloud infrastructure as businesses continue to move away from on-premise systems.
10. Ping Identity: $2.9 Billion
Cybersecurity and identity management company Ping Identity was taken private by Thoma Bravo for $2.9 billion. Ping Identity provides solutions for secure access and identity management across digital platforms, an area of growing importance as remote work and digital transformation continue to accelerate. This acquisition underscores Thoma Bravo’s aggressive push into the cybersecurity space.
Conclusion
Private equity firms continue to make significant inroads into the tech sector in 2024, capitalizing on depressed valuations and the growing importance of tech-driven solutions. From fintech and ed-tech to cybersecurity and cloud services, these take-private deals highlight the broad scope of private equity’s interest in reshaping key industries. As the year progresses, we’re likely to see even more major acquisitions in the tech space, driven by a combination of innovation and strategic financial planning.
