TPG is acquiring a majority stake in automation-software firm Nintex, which is backed by Thoma Bravo, according to a statement Tuesday.
The deal is valued at more than $2 billion, including debt, according to people familiar with the matter who asked not to be identified because the terms are private. Nintex was valued at $460 million in 2018, according to PitchBook.

Thoma Bravo will make an equity investment in the company and retain a significant minority interest.

Nintex helps customers automate processes without needing to code, which makes it easy for businesses to adapt, Nintex Chief Executive Officer Eric Johnson said in an interview.

He said popular uses for its products are onboarding new employees and helping manage remote working. It also helps companies figure out what processes need to be automated.

Rolling Stakes

Private equity firms in recent years have brought on rivals to invest in their portfolio companies. It’s also increasingly common for the sellers to roll over their stakes. A new partner can provide some return on investment while also setting a new valuation on an asset. Thoma Bravo first invested in Nintex in 2018.

“It’s an increasing trend in software,” TPG Capital Co-Managing Partner Nehal Raj said. “As long as the firms know each other well, you get the benefit of double the bandwidth.”

While it isn’t ready to talk about exit opportunities, Raj said some of the world’s biggest technology companies could look to deals in Nintex’s space.

“ServiceNow, Microsoft, SAP, Salesforce, Oracle — they’re all thinking about how they want to play in the automation space,” Raj said.

Hudson Smith, a Thoma Bravo partner, said the company can use both firms’ networks to scour for acquisitions. The company has done a handful of deals in the past few years and is looking to grow further that way.

Morgan Stanley advised TPG while Bank of America Corp. was lead financial adviser to Nintex, which also received advice from Macquarie Group Ltd.

— By Liana Baker and Katie Roof