Francisco Partners is in advanced negotiations to acquire a controlling stake in construction software provider Command Alkon from fellow private equity firm Thoma Bravo in a transaction that could value the business at up to $1.3bn according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as revealing that Francisco Partners is in late-stage talks to purchase Thoma Bravo’s 55% holding in the company. Heidelberg Materials, Command Alkon’s largest customer, owns the remaining 45% stake after acquiring it from Thoma Bravo in 2021.
The deal could be announced within days, although discussions remain ongoing and there is no guarantee an agreement will be reached.
The prospective transaction would provide Thoma Bravo with an exit from an investment it made in 2020, continuing the firm’s track record of monetising software assets as sponsor-to-sponsor transactions remain an important source of deal activity amid a still-selective M&A environment.
Based in Hilliard, Ohio, Command Alkon develops software for construction materials producers and suppliers, serving customers across aggregates, cement, asphalt, ready-mix concrete and concrete products. Its technology supports operational workflows and supply chain management across the heavy construction materials industry, and the company operates internationally through a network of global offices.
Heidelberg Materials became a significant minority shareholder in 2021 when it acquired a 45% interest in the business from Thoma Bravo, in a transaction that valued Command Alkon at approximately $1.7bn.
