In a strategic move poised to reshape the shipping technology landscape, private equity firm Thoma Bravo is in discussions to merge Auctane, a leading shipping software provider, with WWEX, a prominent third-party logistics company. This merger is projected to create a combined business valued at approximately $12 billion, according to a report from Bloomberg citing sources familiar with the negotiations.
The proposed deal includes an equity injection of around $500 million into the newly formed entity, with plans for some existing WWEX shareholders to roll their equity into the combined group. Notably, WWEX is currently owned by Ridgemont Equity Partners, Providence Equity Partners, CVC Capital Partners, and growth investor PSG, highlighting a diverse ownership structure that may play a role in the negotiations.
Thoma Bravo's historical involvement with Auctane is significant; the firm acquired the company, formerly known as Stamps.com, in 2021 for $6.6 billion, backed by a $2.6 billion unitranche loan from direct lenders, including Blackstone. The merger with WWEX would not only enhance Auctane’s operational capabilities but also leverage WWEX’s impressive annual revenue of $4.4 billion generated through its subsidiaries last year.
To finance the merger, Thoma Bravo is reportedly seeking a direct loan of approximately $5 billion from private credit managers. This financing would serve dual purposes: supporting the merger and refinancing existing debts at both Auctane and WWEX. Blackstone, already a lender to Auctane, is among the firms engaged in these discussions, indicating strong interest in the proposed deal.
While the discussions are ongoing, no definitive agreement has been reached, and there remains uncertainty about whether the transaction will ultimately be completed. If successful, this merger could significantly impact shareholders, employees, and the broader logistics market—creating a formidable player capable of offering enhanced technology solutions in the shipping sector.
As for the timeline, further details are pending, but the outcome of the negotiations, along with necessary regulatory approvals, will be critical in determining when the deal may officially close. Regulatory considerations will likely include antitrust reviews, given the scale of the combined entity and its potential impact on competition within the shipping technology and logistics industries.
In summary, the proposed merger between Auctane and WWEX represents a significant consolidation in the shipping technology space, driven by Thoma Bravo’s strategic vision to create a market leader valued at $12 billion and poised for future growth.