ThoughtWorks receives $720 mn in investment at enterprise value of $4.6 bn

ThoughtWorks, a global software consultancy, has announced that GIC, Siemens AG, Fidelity Management and Research LLC, and Mubadala Investment Company have invested $720 million in the company.

Founded over 25 years ago, ThoughtWorks has grown from a small team in Chicago to a leading global software consultancy of more than 7,000 plus ThoughtWorkers. Its roots are in digital transformation and agile software development; the company has been at the forefront of defining the tech principles used by some of the world’s most successful organisations.

The proceeds will be used to bay back equity from existing investors. The new commitment of capital comes as the company continues to invest in growth and international expansion.

Also read: Ashoka University researchers team up with Thoughtworks to model Covid-19 spread

“This placement is a very positive indicator of how strong our company and brand are perceived in the market. It’s wonderful that GIC, Siemens, Fidelity and Mubadala see ThoughtWorks to be a strong investment and this is an endorsement of the strength and relevance of our business and people,” said Guo Xiao, President and Chief Executive Officer, ThoughtWorks.

“Since partnering with ThoughtWorks in 2017, the company has gone from strength to strength ― accelerating growth and profitability and transforming to be world-class in a highly strategic global market. ThoughtWorks’ talented employees, global footprint and reputation for technical excellence make it a standout offering in the rapidly evolving digital transformation space,” said Rohan Haldea, partner at Apax. “We welcome GIC, Siemens, Fidelity and Mubadala Investment Company as additional investors to support the company’s growth strategy.”

“Siemens strongly believes in the growth potential of supporting the digitalisation of businesses across all industries. We believe that ThoughtWorks is the right partner with outstanding capabilities. I am proud of our investment to jointly accelerate digital transformation,” said Cedrik Neike, managing board member of Siemens, responsible for Digital Industries and Siemens Advanta.

“As the clear market leader in digital transformation, ThoughtWorks’ long-term growth prospects were key to our investment decision. The company’s unique offerings are pivotal to the digitisation of many businesses which we see accelerating in 2021 and beyond,” said Tim Breen, Executive Director, Technology, at Mubadala.

Goldman Sachs & Co LLC and JP Morgan Securities LLC served as placement agents to ThoughtWorks for this transaction. Kirkland & Ellis LLP acted as legal advisor to ThoughtWorks.