The new year’s first billion-dollar private equity deal isn’t a take-private buyout or the acquisition of a once-flashy startup. Instead, it’s an add-on.
Clearlake Capital Group has agreed to acquire LANDesk, a provider of IT and security software, from Thoma Bravo in a deal The Wall Street Journal reports to be worth more than $1.1 billion. Clearlake will combine LANDesk with current portfolio company HEAT Software, which makes software related to cloud service management and unified endpoint management for various sorts of organizations.
HEAT is itself the product of a different Clearlake add-on; in 2015, the firm acquired FrontRange Solutions and merged it with Lumension to create the business. At the time, Clearlake had backed Lumension for a little less than a year.
For Thoma Bravo, meanwhile, the deal marks the exit of an investment from 2010, when the firm acquired LANDesk from Emerson (NYSE: EMR).
The combined company created by the deal—which will adopt a new name in the near future—reflects that acquisitive past, claiming some 1,600 employees across 23 countries working with more than 22,000 customers. The business will have about $180 million in EBITDA, according to the WSJ. The sale is expected to close later this month.