According to anonymous sources, a consortium led by Apax Partners, a buyout firm, is reportedly contemplating a potential bid to privatize US-listed technology consultancy, Thoughtworks Holding Inc.
The sources indicated that Apax has joined forces with the Canada Pension Plan Investment Board and engaged advisors to explore a potential joint offer for the remaining shares in Chicago-based ThoughtWorks that they do not already own.
Shares of ThoughtWorks surged up to 25% during Tuesday morning trading, representing the largest intraday gain since September 2021. The market value of the company now stands at $2.4 billion, up 21% at 10:49 am in New York.
Thoughtworks’ stock price has experienced a sharp drop of over 80% from its peak following the company’s initial public offering, and in February, the company provided a profit outlook for the year that failed to meet investor expectations.
Apax purchased Thoughtworks in 2017 for an undisclosed amount and remains the controlling shareholder after listing the company through a Nasdaq IPO in September 2021.
While discussions are ongoing, the sources emphasize that no formal offer has been made, and there is no guarantee that negotiations will lead to a bid. Apax and CPPIB representatives declined to comment on the matter, while a spokesperson for ThouThoughtWorksd that the company is focused on executing its business plan and refused to comment further.
According to data, other major shareholders of ThoughtWorks include German engineering firm Siemens AG and Singaporean sovereign fund GIC Pte, both of which invested before the IPO.
Thoughtworks operates in 18 countries, boasting more than 12,500 employees, and counts Bayer AG, Mercedes-Benz Group AG, and Paypal Holdings Inc. among its clientele.
