Thoma Bravo, FP and TPG close take-private transactions; plus, 5 PE-backed music deals

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Thoma Bravo, FP and TPG close take-private transactions; plus, 5 PE-backed music deals

Good morning, dealmakers. Thank goodness it’s Friday!

It’s Obey Martin Manayiti here with the Wire.

Fridays are often rather quiet on the deal front, but this morning there’s news of a big health tech transaction closing: Thoma Bravo has completed its $1.8 billion acquisition of NextGen Healthcare, which develops software for handling electronic medical records.

Earlier in the week, an even bigger tech deal closed, when Francisco Partners and TPG announced the completion of their $6.5 billion take-private deal of software tools developer New Relic.

There may be growing optimism about dealmaking in 2024, finds Dykema's 19th annual M&A Outlook Survey.

And, for your listening pleasure, we’re capping off the week on a light note, with a roundup of five musical PE deals.

Ambulatory healthcare

Thoma Bravo has completed the $1.8bn take private of NextGen Healthcare, an Atlanta-based provider of software used in handling electronic medical records. The deal was announced in September.

NextGen Healthcare serves more than 100,000 ambulatory healthcare providers who care for more than 65 million patients in the US.

Subscribe to the premium version of the Wire to get more on this deal.

Another done deal

Earlier in the week, Francisco Partners and TPG completed the previously announced take-private deal of New Relic, a provider of tools for developing software, for $6.5 billion.

New Relic stockholders approved the deal on November 2.

Premium subscribers have more on this deal.

Turn on the music

Investing in music royalties and copyrights has become a popular trend in private equity over the past few years. A key reason for the sector’s allure is its recession-resistant ability to provide stable and consistent cashflow in a shaky economy, writes my colleague Iris Dorbian.

Lately, Round Hill Music Royalty Partners and HarbourView Equity Partners seem to dominate the space; however, the bullishness has been spreading to other firms: Last week, Morgan Stanley Tactical Value, the private equity and credit investment platform of Morgan Stanley Investment Management, said it was teaming up with renowned music publisher Kobalt to form a $700 million plus venture focused on acquiring music royalties.

Iris looked at these five music deals that struck a resonating chord with us this past year. Here’s a pair of examples:

Upgrade to the premium version of the Wire to learn more about the five deals.

Survey says…

As the curtain begins to close on 2023, many dealmakers are already looking ahead to 2024 and feeling cautiously optimistic.

Dykema's 19th annual M&A Outlook Survey polled more than 260 senior executives and advisers engaged in M&A.

Fifty-seven percent of respondents said they expect the M&A market will strengthen over the next 12 months.

Premium subscribers have access to deeper insights from this survey.

Here’s hoping for the best.

That’s it for this week. As always, you can reach me at [email protected].

MK Flynnwill be back with the newsletter on Monday.

Have a nice weekend,

Obey

Read the full wire commentary on PE Hub ...

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