The tech industry in 2024 has seen a massive influx of take-private deals. This is where private equity (PE) firms buy out public companies and return them to private ownership. This allows these companies to operate without the quarterly pressures of the stock market. They can better focus on long-term growth strategies. Here are the 12 largest take-private PE acquisitions in tech so far this year. This list shows the ongoing appetite for consolidation and restructuring.
Deal #1: Adevinta — $13 Billion
Norwegian classifieds platform Adevinta has had a whirlwind journey. In 2019, it spun off from Schibsted. Then after acquiring eBay’s classifieds arm for $9.2 billion in 2020, Adevinta became a powerhouse in online marketplaces across Europe and Latin America. In late 2023, a private equity consortium led by Permira and Blackstone agreed to acquire Adevinta for $13 billion.
Key Notes of the Deal
- Valuation: $13 billion
- Buyers: Permira and Blackstone
- Sectors: Online classifieds
- Closed: May 2024
- Strategic Focus: Accelerating global growth in online marketplaces
Deal #2: Squarespace — $6.9 Billion
Squarespace is a dominant player in website building and hosting. In its heyday during its IPO in 2021, the company raised $300 million. However, the stock hit turbulence soon after. Its valuation sank to as low as $2 billion in 2022. By 2024, as Squarespace’s stock rebounded, Permira seized the opportunity and struck a $6.9 billion all-cash deal to take the company private. For Squarespace, this deal is a chance to innovate away from the scrutiny of public markets. And it continues to keep its edge in the booming website services industry.
Key Notes of the Deal
- Valuation: $6.9 billion
- Buyer: Permira
- Sector: Website hosting and design
- Expected Close: Q4 2024
- Strategic Advantage: Freedom to expand offerings without stockholder pressure
Deal #3: Nuvei — $6.3 Billion
Nuvei is a Canadian fintech company that helps with payment processing and currency conversion. After it peaked in 2021, it faced a big decline in value. Having once reached a valuation of over $24 billion, the company saw its market cap plummet to $2.6 billion by late 2023. In April 2024, Advent International stepped in, agreeing to take Nuvei private for $6.3 billion. This move is set to revitalize Nuvei’s focus on long-term strategy, providing it with flexibility to adapt without the pressures of quarterly earnings reports.
Key Notes of the Deal
- Valuation: $6.3 billion
- Buyer: Advent International
- Sector: Fintech and payment services
- Expected Close: Late 2024 or early 2025
- Strategic Focus: Reinvest in product development and global expansion
Deal #4: PowerSchool — $5.6 Billion
PowerSchool, a leading K-12 education software provider, is returning to private ownership. Bain Capital is acquiring the company for $5.6 billion. Once owned by Apple and others, the company went public in 2021. Its valuation peaked at $5.5 billion and dropped to $1.8 billion soon after. This has made PowerSchool a prime candidate for privatization.
Key Notes of the Deal
- Valuation: $5.6 billion
- Buyer: Bain Capital
- Sector: Education Technology
- Expected Close: Second half of 2024
- Strategic Outlook: Prioritize long-term growth and technological advancements
Deal #5: Darktrace — $5.3 Billion
Darktrace, the U.K.-based cybersecurity firm, has become one of the most talked-about tech take-privates of 2024. Known for its AI-powered cybersecurity tools, the company went public in 2021 but faced high stock volatility. Thoma Bravo stepped in with a $5.3 billion offer to take the company private. Analysts expect this deal to give Darktrace more financial and operational freedom. This can help accelerate its R&D in cybersecurity without the pressure of public markets.
Key Notes of the Deal
- Valuation: $5.3 billion
- Buyer: Thoma Bravo (via Luke Bidco Ltd.)
- Sector: Cybersecurity
- Expected Close: By the end of 2024
- Strategic Goal: Invest in AI-driven cybersecurity solutions
Deal #6: Instructure — $4.8 Billion
Instructure is a pioneer in educational technology, with its Canvas learning management system (LMS). The company has had a complex relationship with the public markets. After Thoma Bravo took it private in 2019, it went public again in 2021. However, KKR is stepping in with a $4.8 billion offer to take the company private once more.
Key Notes of the Deal
- Valuation: $4.8 billion
- Buyer: KKR
- Sector: Educational technology
- Expected Close: Late 2024
- Strategic Focus: Expand Canvas LMS and develop new educational tools
Deal #7: Alteryx — $4.4 Billion
Alteryx, a data analytics software company, has had a rollercoaster ride since its IPO in 2017. Its market cap hit a high of $12 billion before plummeting to $2 billion in recent years. In a bid to revive its fortunes, Clearlake Capital and Insight Partners acquired Alteryx for $4.4 billion.
Key Notes of the Deal
- Valuation: $4.4 billion
- Buyers: Clearlake Capital and Insight Partners
- Sector: Data analytics
- Closed: March 2024
- Strategic Emphasis: Improve software offerings and target enterprise clients
Deal #8: EngageSmart — $4 Billion
EngageSmart is a provider of customer engagement software. Following its 2021 IPO, EngageSmart’s valuation hovered between $2 billion and $3 billion. In January 2024, Vista Equity Partners took the company private for $4 billion.
Key Notes of the Deal
- Valuation: $4 billion
- Buyer: Vista Equity Partners
- Sector: Customer engagement software
- Closed: January 2024
- Strategic Shift: Focus on specialized services in billing and practice management
Deal #9: Rover — $2.3 Billion
Rover, the online marketplace for pet-sitting services, returned to private ownership in February 2024. Blackstone acquired the company for $2.3 billion. Previously, Rover went public through a SPAC in 2021. However, it struggled with profitability and market volatility. Going private provides Rover with the time and flexibility to refine its business model. It can explore international growth without the pressure of public shareholders.
Key Notes of the Deal
- Valuation: $2.3 billion
- Buyer: Blackstone
- Sector: Pet services marketplace
- Closed: February 2024
- Strategic Focus: Expand services and market reach
Deal #10: Everbridge — $1.8 Billion
Everbridge is a critical event management software company. Once valued at $6.4 billion, the company’s market cap tanked. In July 2024, Thoma Bravo took the company private for $1.8 billion
Key Notes of the Deal
- Valuation: $1.8 billion
- Buyer: Thoma Bravo
- Sector: Critical event management software
- Closed: July 2024
- Strategic Aim: Invest in product development and international growth
Deal #11: Kahoot — $1.7 Billion
Kahoot is a gamified e-learning platform. Since going public in 2021, it has struggled to maintain its momentum on the Oslo Stock Exchange. This prompted Goldman Sachs Asset Management and others to buy the company for $1.7 billion.
Key Notes of the Deal
- Valuation: $1.7 billion
- Buyer: Goldman Sachs Asset Management-led consortium
- Sector: e-learning
- Closed: January 2024
- Strategic Plan: Expand educational offerings and scale the platform globally
Deal #12: Model N — $1.25 Billion
Model N is a software platform that automates decisions around pricing and compliance. And it’s traded publicly since 2013. Although, the company has faced sluggish stock performance in recent years, with its valuation rarely exceeding $1.5 billion. Vista Equity partners lead a deal to take Model N private for $1.25 billion.
Key Notes of the Deal
- Valuation: $1.25 billion
- Buyer: Vista Equity Partners
- Sector: Pricing and compliance software
- Closed: June 2024
- Strategic Vision: Scale pricing solutions and drive innovation in regulatory compliance tools
We hope that you’ve found this article valuable when it comes to learning about the biggest take-private PE acquisitions of 2024. If you’re interested in reading more, please subscribe below to get alerted of new articles as we write them.
