Thoma Bravo is exploring a sale of Foundation Software that could value the construction software company at more than $2 billion, according to people familiar with the matter. The potential divestiture points to sustained private equity appetite for exits in vertical software.
Thoma Bravo is weighing a divestiture of Foundation Software, its construction software portfolio company, at a valuation north of $2 billion, people familiar with the matter said.
The private equity firm has begun sounding out potential buyers for the business, the people said, asking not to be identified because the discussions are private. No final decision has been made, and the process could still change, they added.
Thoma Bravo declined to comment. Foundation Software did not immediately respond to requests for comment.
The potential divestiture comes as Thoma Bravo pursues deal activity across the software sector. Its portfolio company Proofpoint is in talks to acquire cybersecurity firm Varonis Systems, which has a market value of about $5 billion, Reuters reported Wednesday. Varonis shares rose more than 10 percent on the news.
A $2 billion-plus valuation for Foundation Software would mark a significant exit for a vertical software business, a category where recurring-revenue models and entrenched customer bases have drawn sustained private equity interest. Construction software specifically has become a focus area as contractors digitize project management, accounting, and field operations, creating sticky revenue streams that support premium multiples.
Thoma Bravo, one of the largest software-focused private equity firms, has been an active seller alongside its acquisition push. The Foundation Software process runs parallel to the Proofpoint-Varonis talks, showing the firm's strategy of recycling capital across its portfolio while maintaining exposure to high-growth software segments.
Terms of a potential Foundation Software deal, including the buyer pool, payment structure, and timeline, have not been disclosed. The company's financial metrics, including revenue and earnings, also remain private. A sale process of this scale would likely attract interest from strategic buyers in construction technology and other private equity firms seeking platform investments in the vertical.
This article is for informational purposes only and does not constitute investment advice.
