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Medallia Lines Up $6.4bn Sale to Thoma Bravo

July 27 2021

US-based customer experience management specialist Medallia has agreed terms of a sale to software investment firm Thoma Bravo, in an all-cash transaction valuing the company at $6.4 billion. Bids from other potential buyers will also be considered over the next 40 days.

Leslie StretchMedallia announced both the potential sale and the 40-day 'go-shop' period this morning - the latter allows time for the firm and its advisors to 'actively initiate, solicit and consider alternative acquisition proposals from third parties' - with the right to terminate the Thoma Bravo merger agreement, subject to terms.

The firm's platform, the Medallia Experience Cloud, helps users understand and manage the experiences of customers, employees and citizens, capturing 'experience signals' created on daily journeys in person, on calls and via digital channels. It then uses proprietary AI technology to uncover personalized and predictive insights. Earlier this year, the firm acquired digital experience analytics firm Decibel, having previously bought out real-time speech-to-text platform Voci Technologies, video feedback platform LivingLens, and behavioural analytics platform Cooladata.

Through the takeover, Medallia will become a private company with additional resources, and access to Thoma Bravo's operating capabilities, capital support and sector expertise. Under the terms of the agreement, Medallia shareholders will receive $34.00 per share in cash, which represents a premium of approximately 20% to Medallia's unaffected closing stock price on June 10th, 2021, the last full trading day prior to media reports regarding a possible transaction, and a premium of approximately 29% to Medallia's unaffected 30-day average price.

Leslie Stretch (pictured), President and CEO of Medallia, comments: 'Since becoming a public company in 2019, we have made significant progress bolstering our leadership position in experience management. We are eager to build on our success and begin the next phase of differentiated growth, and we believe that becoming a private company represents the best opportunity to do just that. In addition to maximizing value for our shareholders, this transaction will enable us to execute on our long-term strategy with even greater effectiveness, efficiency and flexibility'.

Web site: www.medallia.com .

All articles 2006-21 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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