Thoma Bravo agrees $2bn Verint deal

BY Richard Summerfield

Software investment firm Thoma Bravo has agreed to acquire Verint Systems, a leader in customer experience automation, in a deal worth $2bn.

Under the terms of the deal, Verint common shareholders will receive $20.50 per share in cash - an 18 percent premium to Verint’s 10-day volume weighted average share price up to 25 June 2025, the last day prior to media reports regarding a potential sale of the company.

The transaction, which has been unanimously approved by the Verint board, is expected to close before the end of Verint’s current fiscal year, subject to customary closing conditions, including approval by Verint shareholders and the receipt of required regulatory approvals.

Upon completion of the transaction, Verint common stock will no longer be listed on any public stock exchange. Thoma Bravo intends to merge Verint with its portfolio company Calabrio, a workforce engagement management platform, which the firm says will offer an expansive portfolio to advance the critical priorities of customer experience organisations across the size and complexity spectrum. The combination will create more opportunities for companies to quickly achieve business outcomes in their interactions with customers.

“Thoma Bravo’s investment is a testament to our CX Automation category leadership,” said Dan Bodner, chief executive and chairman of Verint. “Leading brands around the world are reporting strong AI business outcomes with the Verint CX Automation Platform. We are making good progress in delivering AI-powered solutions to an early stage CX Automation market, and we recently announced that our AI Annual Recurring Revenue (ARR) now represents 50% of our total ARR. We look forward to extending our category leadership together with Thoma Bravo.”

“Verint’s market leading CX Automation platform, enterprise customer base and talented employees position it well to shape the future of customer experience with AI as part of the Thoma Bravo portfolio,” said Mike Hoffmann, a partner at Thoma Bravo. “At the closing of the transaction, Verint will join forces with Thoma Bravo portfolio company Calabrio. The opportunity to automate CX workflows with an AI-powered platform is significant, and the combined company will have the industry’s broadest CX platform arming brands of all sizes with strong AI business outcomes.”

According to a statement announcing the deal, certain shareholders and members of the Verint board have entered into voting agreements pursuant to which they have agreed, among other things, to vote their shares of Verint stock in favour of the transaction, subject to certain conditions. These shareholders currently represent approximately 14.5 percent of the voting power of Verint’s stock.

Thoma Bravo, which had about $184bn in assets under management as of 31 March, is one of the largest software-focused investors in the world. The firm has acquired or invested in more than 530 software and technology companies. In August, the firm agreed a $12bn deal to acquire human resources software provider Dayforce.

News: Thoma Bravo to buy Verint in $2 billion deal as software acquisitions ramp up

Lowe’s announces $8.8bn Foundation Building Materials deal

BY Richard Summerfield

In a deal to expand its footing in the professional builders market, Lowe’s Co has agreed to acquire Foundation Building Materials, a distributor of drywall, insulation and other products, for approximately $8.8bn in cash. The transaction value reflects an adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 13.4x.

According to a statement announcing the deal, Lowe’s has secured $9bn in fully committed bridge financing from Bank of America, N.A. and Goldman Sachs & Co. LLC. The company expects to finance the acquisition through a combination of short-term and long-term debt and intends to maintain its current credit ratings. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including regulatory approval.

“With this acquisition, we are advancing our multi-year transformation of the Pro offering,” said Marvin R. Ellison, chairman, president and chief executive of Lowe’s. “It allows us to serve the large Pro planned spend within a $250 billion total addressable market and aligns perfectly with our Total Home strategy. FBM’s scalable, multi-trade distribution platform and strong leadership combined with our recent acquisition of ADG will significantly enhance our Pro offering. We’re excited to welcome the FBM team and strengthen our solutions for our growing Pro customers.”

“Joining Lowe’s is an exciting next step,” said Ruben Mendoza, president and chief executive of Foundation Building Materials. “Since 2011, we’ve built a leading position in drywall, ceiling systems, and metal framing, with proven success integrating acquisitions. Together with Lowe’s complementary products and incredible brand, we’ll offer a more comprehensive solution for Pro customers and accelerate growth.”

Foundation Building Materials is a leading North American distributor of interior building products, including drywall, metal framing, ceiling systems, commercial doors and hardware, insulation and complementary products serving large residential and commercial professionals in both new construction and repair and remodel applications. Since 2011, it has grown organically and inorganically to become an industry leader, with a network of over 370 locations in the US and Canada serving 40,000 Pro customers. In 2024, on a pro forma basis, the company generated approximately $6.5bn in revenue and $635m in adjusted EBITDA. It generated approximately 25 percent and 30 percent compound annual growth rate for revenue and adjusted EBITDA, respectively, from 2019 to 2024.

Lowe’s has completed a number of deals aimed at strengthening its offering for professional contractors and builders in recent years. In April, the company acquired Artisan Design for $1.33bn.

In addition to the deal for Foundation Building Materials, Lowe’s also reported its fiscal second-quarter financial results on Wednesday. The company posted an adjusted profit of $4.33 per share. Revenue totalled $23.96bn in the period, which met Wall Street’s expectations. The company has also raised its full-year sales outlook to a range of $84.5bn to $85.5bn.

News: Lowe's to buy Foundation Building Materials for $8.8 billion to boost contractor business

UK defence sector funding hits “all-time high”, reveals new report

BY Fraser Tennant

Investments in the UK defence and national security sectors surged in 2024, with both government funding and private capital investments increasing, according to a new report by Heligan Group

In its ‘Investing in Defence 2025’ report, Heligan Group reveals that investment funding – primarily driven by venture capital for European defence, security and resilience start-ups – reached an all-time high of $5.2bn last year, nearly a fivefold increase over six years.

This boom, states the report, has been driven by geopolitical tensions and conflict, primarily the Russian war against Ukraine, which has driven greater demand for defence technology – increasing by 64 percent between 2014 and 2024.

The UK is also pursuing innovation programmes via the National Security Strategic Investment Fund and accelerators such as the Defence and Security Accelerator, with innovation centrally coordinated by the newly established UK Defence Innovation organisation.

“Public-private partnerships fundamentally reduce investment risk for private investors and provide long-term growth prospects,” said Matt Croker, a partner at Heligan Group. “PPPs also foster innovation and build the critical links and understanding between those with the need and those with the solutions.

“A new UK-European Union (EU) post-Brexit agreement also paves the way for UK-based firms’ access to the EU’s new Security Action for Europe – a €150b fund providing loans for defence projects,” he continued. “Subsequently, I believe that the long-term stability and resilience of investments in defence are improved due to a sector strongly influenced by geopolitical necessity and one that is financially backed with governmental support.”

The report also notes that alongside private equity and corporate investors. mainstream investors are playing a significant role, with a greater focus on dual-use technologies such as artificial intelligence, cyber security, autonomous systems and quantum, despite historically having shied away from such investments.

Heligan Group also recognises a tangible realignment of ethical and environmental, social and governance lines, with many seeing a momentum shift, with attitudes to defence and security investing now framed as essential for societal security and stability in the context of war in Eastern Europe.

Mr Crocker concluded: “With heightened threat levels, investors would appear to be loosening restrictions and recognising defence as a critical and necessary aspect of the overall investment landscape, as well as a potentially untapped and lucrative addition to their investment portfolios.”

Report: Investing in Defence 2025

TPI Composites files for Chapter 11

BY Fraser Tennant

Amid “industry-wide pressures”, US wind turbine blade maker TPI Composites, along with its domestic subsidiaries, has filed for Chapter 11 bankruptcy protection to pursue a comprehensive restructuring.

To allow it to emerge as a stronger enterprise, TPI has reached an agreement, subject to final documentation and approval of the Bankruptcy Court, with its senior secured lenders comprised of funds affiliated with funds managed by Oaktree Capital Management.

The agreement will see Oaktree provide a debtor-in-possession financing facility which is expected to be comprised of up to $27.5m in new money to support TPI’s day to day operations and up to $55m rolled up from the company’s existing senior secured credit facility.

“Industry-wide pressures have created financial challenges that must be addressed,” said Bill Siwek, chief executive of TPI. “We have explored a variety of alternatives to address the challenges we face and believe that a Chapter 11 process is necessary to position the company for success.”

In conjunction with the Chapter 11 proceedings, TPI has filed a number of customary motions with the Bankruptcy Court seeking court authorisation to support its operations, including the payment of employee wages, salaries and benefits.

TPI anticipates receiving court approval for these requests and intends to continue honouring its obligations to key stakeholders post filing, including by satisfying payment obligations to suppliers for goods and services provided in accordance with customary terms after the filing.

“We aim to reach agreement with stakeholders on the terms of a plan of reorganisation for the company to be able to right-size its balance sheet and go forward with the ability to compete successfully in the current economic environment,” continued Mr Siwek. “Doing so will provide access to new liquidity to continue our operations and invest in innovation, ensuring our customers can continue to count on TPI for leading-edge wind blade solutions.”

Focused on innovative and sustainable solutions to decarbonise and electrify the world, TPI operates factories in the US, Mexico, Turkey and India, with additional engineering development centres in Denmark and Germany and global service training centres in the US and Spain.

TPI does not expect any material operational impact from the Chapter 11 proceedings and will continue to operate its manufacturing sites to deliver blade services.

Mr Siwek concluded: “I am grateful to our associates for their dedication in continuing to deliver outstanding service, and to our customers, suppliers, service providers and other stakeholders for their steadfast support during this restructuring.”

News: Oaktree to take over wind blade maker TPI after bankruptcy

Centerbridge Partners agrees $2bn MeridianLink deal

BY Richard Summerfield

Investment firm Centerbridge Partners has agreed to acquire financial software provider MeridianLink in a $2bn deal. Under the terms of the agreement, MeridianLink shareholders will receive $20 per share in cash for each share of common stock they own.

The deal has been unanimously approved by MeridianLink’s board and is expected to close in the second half of 2025 pending shareholder and regulatory approvals. Investors holding about 55 percent of the company’s common stock have agreed to support the transaction. Once completed, MeridianLink will be privately held and remain headquartered in Irvine, California.

“We are excited for the next chapter of innovation and growth with our partners at Centerbridge,” said Larry Katz, president and chief executive-designate of MeridianLink. “Today’s announcement is a strong endorsement of our leading digital lending platform that serves nearly 2000 community financial institutions and reporting agencies. Together with Centerbridge, we will unlock the potential of this company by accelerating product innovation, harnessing the power of AI and data, and enhancing the delivery of exceptional customer experiences.”

“This is an exciting next step for MeridianLink,” said Nicolaas Vlok, chief executive of MeridianLink. “Our dedicated team has built our market-leading platform and partner ecosystem, and I am confident in the path forward for the Company, bolstered by Larry’s leadership and Centerbridge’s partnership.”

“Over the last several years, our Board has carefully evaluated alternatives to maximise shareholder value,” said Ed McDermott, chair of the board at MeridianLink. “The Board thoroughly reviewed Centerbridge’s proposal with the assistance of independent financial and legal advisors and determined this transaction would create certain, compelling and immediate value for our shareholders at an attractive premium and position MeridianLink to increase its competitive edge in a rapidly changing technology landscape.”

“As the pace of change across the finance and tech sectors continues to accelerate, MeridianLink is uniquely positioned to help financial institutions enhance their digital lending and credit reporting capabilities to expand and deepen client relationships, unlock the potential of data and AI, and drive their growth,” said Jared Hendricks, senior managing director and Ben Jaffe, managing director of Centerbridge. “At Centerbridge, we have a proven track record of partnering with exceptional companies at the intersection of finance and technology to create value for customers and opportunities for employees. We believe in the importance of fostering a vibrant, modern banking system using market-leading technology.”

For the second quarter of 2025, MeridianLink posted revenue of $84.6m, an increase of 8 percent year on year. The company reported lending software solutions revenue of $68.7m in the quarter, up 12 percent from a year earlier. Operating income was $5.2m, or 6 percent of revenue, while non-generally accepted accounting principles operating income reached $23m or 27 percent.

News: Software firm MeridianLink to go private in $2 billion deal with Centerbridge