Thoma Bravo Surrenders Medallia to Creditors — $5.1B Equity Wipeout Marks Largest PE Software Loss of SaaS Correction

Yahoo Finance / Reuters·high signal

Thoma Bravo is transferring customer-experience software firm Medallia to creditors including Blackstone, KKR, and Apollo after a complete equity wipeout on its $6.4B 2021 acquisition. The $3B in debt will be swapped for ownership stakes, reducing current shareholders to zero. This is the most significant PE software impairment since the 2021 market peak, signaling that leveraged SaaS buyouts done at peak multiples are now structurally underwater as AI compresses valuations and rising rates inflate debt service costs.