Experience Platform Medallia to go Private for $6.4bn

The voice of the customer feedback firm first went public two years ago

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Experience Platform Medallia to go Private for $6.4bn
Voice of the Customer

Published: July 27, 2021

William Smith

Customer and employee experience platform provider Medallia has entered into a definitive agreement to be acquired by software investment firm Thoma Bravo.  

The all-cash transaction values Medallia at $6.4bn and will see the company go private – a move which it said would give it greater flexibility to innovate. Under the terms of the agreement, Medallia shareholders will receive $34.00 per share in cash – a premium of 20% on Medallia’s stock price on the day before media reports emerged. 

Today’s announcement underscores our commitment to constant innovation, expansion and value creation. Since becoming a public company in 2019, we have made significant progress bolstering our leadership position in experience management. Today, Medallia benefits from a differentiated portfolio of cloud technology solutions and an expansive, loyal customer base across a diverse set of industry verticals and geographies. I look forward to our continued outstanding work in support of our customers,” said Leslie Stretch, President and CEO of Medallia 

“Furthermore, 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 maximising value for our shareholders, this transaction will enable us to execute on our long-term strategy with even greater effectiveness, efficiency and flexibility.” 

The main element of Medallia’s offering is its cloud-based customer experience software platform, which captures voice of the customer feedback across a host of channels – including web, social, mobile, and contact centre. The company says it already processes more than a billion comments from its customers’ employees, using AI to reveal insights and predict factors such as churn. 

“Medallia has positioned itself at the forefront of the experience management market with a best-in-class SaaS platform that leverages proprietary AI to help companies better understand their customers and employees and drive meaningful business growth at scale,” said Scott Crabill, a Managing Partner at Thoma Bravo 

“Medallia’s ability to provide personalised and predictive insights across every channel and to companies of all sizes has become mission-critical in a rapidly expanding universe of structured and unstructured data, where more and more business is transacted digitally. We look forward to partnering with Leslie and the talented Medallia team and applying our operational and investment expertise in software to support the company in the next phase of its growth journey.” 

The transaction is expected to close in 2021, subject to the usual closing conditions such as approval by Medallia shareholders and regulatory approvals. 

 

 

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