A Blackstone-led consortium including Apollo and FS KKR Capital has taken control of Medallia. The new owners will inject $150 million of capital into the software company. This recapitalization aims to reduce debt and accelerate AI-driven innovation.
The transaction wipes out Thoma Bravo’s $5 billion equity investment. Thoma Bravo originally acquired Medallia for $6.4 billion. That initial take-private deal occurred in 2021.
The loss ranks among the largest in private equity history. Co-founder Orlando Bravo publicly acknowledged the acquisition was a big mistake.