Herndon's Deltek Acquired by Thoma Bravo for $1.1 Billion

Deltek, a Herndon-area company that provides enterprise software and information solutions for government contractors and professional service firms, announced on Monday that it will be acquired by the private equity investment firm Thoma Bravo for $1.1 billion. 

Deltek's stockholders will receive $13 in cash for each share of Deltek stock when the transaction closes. The share price represents a 7 percent discount to Deltek's stock price on Aug. 24 of this year, and a 24 percent premium over their stock price on June 11 earlier this year, according to a release from the company. 

The company's board of directors unanimously approved the definitive agreement for the Deltek to be acquired by Thoma Bravo, and Deltek's largest shareholder, New Mountain Capital, consented in favor of the acquisition. 

just south of the Town of Herndon in December 2011. The company, which was founded in Northern Virginia, had made acquisitions in 2011 that resulted in a jumble of different office spaces throughout the area. The different parts of Deltek moved into one building just off of Sunrise Valley Drive.

“Over the past seven years, we have successfully executed our long term plans for Deltek to enter new markets, grow internationally, and expand our industry-leading solutions for project-based companies,” said Kevin Parker, Deltek’s president, CEO and Chairman of the Board. 

“Throughout our journey, New Mountain Capital gave us outstanding support and was instrumental in building the Deltek of today," Parker said. "This deal with Thoma Bravo delivers significant value to all of our existing shareholders and gives us a partner that is committed to Deltek’s mission of being the industry standard solutions provider to project-based businesses worldwide.”     

Orlando Bravo, managing partner at Thoma Bravo, said in a prepared statement: “We have a long history of investing in highly respected and industry-leading software companies. In Deltek, we found a vertical market leader with unmatched solutions, a loyal and broad customer base, passionate employees and significant organic and acquisition-led growth opportunities, and the firm is confident in our approach and experienced in leveraging such assets to drive growth.”

“Deltek’s powerful brand presence in the government contractor, professional services, and project-oriented markets makes it well poised for continued global industry leadership,” said Thoma Bravo partner Holden Spaht. “Thoma Bravo is excited to work with Deltek’s leadership team to accelerate growth of the company through the firm’s proven buy and build strategy.”

“Working with Kevin Parker and the entire Deltek team to build the company into a global market leader has been a true success story for New Mountain Capital and highlights our focus on building great businesses,” said Alok Singh, lead director of Deltek’s Board of Directors, and a managing director at New Mountain Capital.  “We are very proud of the accomplishments that Deltek has achieved during the time we held a majority share in the company." 

For more on the Deltek acquisition, read the company's release.