Thoma Bravo to Acquire J D Power

An American private equity firm that had recently acquired Autodata Solutions Group has finalized a deal to acquire J.D. Power and associates. J.D. Power is a data analytics and consumer intelligence firm that is closely related to the auto industry and is known for its annual quality awards related to survey of the consumer opinion and feedback regarding new models as well as its Power Information Network.

The buyer in question is the private equity firm Thoma Bravo, whisch has offices in San Francisco and Chicago. The company expects to finalize the acquisition of J.D.Power by the end of this year, subject to the usual closing conditions.

The terms of the deal were not disclosed, but according to a Reuters report, the seller of the company, China-backed equity firm XIO Group, was looking to value J.D. Power at close to USD 1.9 billion, and this was inclusive of debt.

In 2016, McGraw Hill Financial which owned J.D. Power had sold the firm to the XIO Group for USD 1.1 billion. It was the XIO Group’s first US deal.

Commenting on the deal in a statement, J.D. Power CEO Dave Habiger said that it would help fuel growth for the firm.

“We are thrilled to partner with Thoma Bravo, a firm that clearly understands our space and is well-positioned to help us develop new growth opportunities and continue on our current path of rapid expansion,” he said in his statement.

Scott Crabill, a managing partner at Thoma Bravo, said in the statement that J.D. Power is one of the most recognized brands in the world and offers scope for significant near- and long-term growth. Currently, the automotive industry is going through a major transformation and most automotive manufacturers agree that it will witness more change in the next decade than in the previous two decades.

Thoma Bravo has a portfolio of companies which are focused on the software and technology-enabled service sectors. The fund house had completed the acquisition of Autodata Solutions Group which supplies data and software services to the automotive industry back in May.