Transaction overview

Lenders acquired a 100% stake in Medallia, a technology and payments firm, for $6.4 billion on April 22, 2026. The deal was announced a year earlier on April 22, 2025, marking one of the largest private equity losses to date. Thoma Bravo led the buyout alongside lenders from Blackstone, KKR, and Apollo, with Antares Capital playing a dual role as both an advisor and lender.

Deal structure and financing

The $6.4 billion transaction is entirely debt-financed, with no disclosed equity component. The lead banks involved were Thoma Bravo and Antares Capital, though specific leverage metrics were not provided in the deal documentation. Blackstone, KKR, Apollo, and other undisclosed lenders are expected to inject an additional $150 million into Medallia to help reduce its debt burden. Given the high level of debt financing, no seller retained stake was mentioned. The lock-up terms and IPO optionality remain unclear due to the highly confidential nature of the transaction.

Strategic context

The acquisition by lenders is primarily driven by Medallia's need to manage significant debt and operating losses. Thoma Bravo, which originally led a $2 billion buyout in 2017, sought to salvage value from its investment amid declining performance and mounting financial challenges. The target company's pivot towards technology and payments services did not yield the expected returns, leading to a series of underperforming quarters and growing debt. Seller's rationale for divesting is rooted in the need to address these operational and financial issues through restructuring and refinancing under new management.

Regulatory path

The transaction likely underwent review by multiple regulatory bodies due to its size and cross-border nature. The deal would have required filings with the U.S. Department of Justice (DOJ) under the Hart-Scott-Rodino Antitrust Improvements Act, as well as European Union (EU) regulators for any activities impacting EU member states. Given the lack of detailed information on regulatory scrutiny, no specific remedies or timelines were announced in public filings.