FORG - Thoma Bravo offered more for Qualtrics than winning bidder Silver Lake - report

2023-04-12 10:55:52 ET

Thoma Bravo is said to have offered to buy Qualtrics ( NASDAQ: XM ) for more than the $18.15 a share that rival private equity firm Silver Lake and Canada Pension Investment Board agreed to in a deal announced last month.

Thoma Bravo wanted to buy Qualtrics ( XM ) and merge it with Medallia, a rival that it already owns, according to a Financial Times report on Wednesday, which cited people familiar. The potential higher price deal was likely thwarted because of concerns about a possible lengthy review from U.S. antitrust regulators.

Thoma Bravo was able to offer "slightly" more than the Silver Lake and CPP because it would have had significant cost saving combining Qualtrics ( XM ) with Medallia, the FT said.

The FT report comes after a Qualtrics ( XM ) proxy filing on Wednesday indicated that unidentified "Party C" submitted a non-binding letter intent for a $21 a share offer on Feb. 28.

In early March the Qualtrics ( XM ) board and advisers determined that the Party C deal would likely see a lengthy antitrust review, a review that may exceed twelve months, and a "substantial" likelihood that an antitrust regulator would likely challenge the transaction.

News of the Thoma Bravo bid for Qualtrics ( XM ) also comes as the private equity firm has seen delays in its planned purchase of ForgeRock ( FORG ) after the transaction received a second request from the Dept. of Justice.

There's concern that DOJ may try to block the $23.25 a deal due to potential concentration in the identity management sector. In late February ForgeRock ( FORG ) and Thoma Bravo entered into a timing agreement with the DOJ.

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