Mailgun Inc., an email API service provider for developers, has reportedly announced the sale of a majority stake in the company to the American private equity firm, Thoma Bravo, LLC. As a matter of fact, Thoma Bravo is reported to be the second owner in the eight-year history of the company.
Mailgun, the company is known for providing API services for the purpose of building email functionality into several applications. It has a customer base of over 150,000 who extensively use its APIs. Established in 2010, the company holds a complicated history, given that it was acquired by Rackspace in 2012, which owned it till 2017. Then came up another private equity firm, Turn/River, which invested about $50 million in the company. Reportedly, following the latest transaction, Turn/River will continue owning a minority stake in Mailgun.
In a recent statement, the CEO of Mailgun, William Conway, affirmed that the latest sale proceeds are expected to aid the company in expanding its potential and speeding up the product roadmap, which is a common refrain by the companies that are about to be acquired. He further assured of the company’s investment of millions in the advancement of products that can be deployed to enhance deliverability, attain deep insights into emails and offer an unparalleled experience to customers. The company is further strengthening its commitment to customer success & enablement to make sure that customers get exactly what they require for developing their communications, he added.
As reported by PE Hub, Thoma Bravo is renowned for lending equity & strategic support to the experienced management teams of many developing companies. It latest investment in Mailgun is being considered the most recent investment in infrastructure software, given the earlier investments in infrastructure software including Flexera, Solarwinds, Embarcadero, Kofax and Dynatrace.
Reportedly, Choate, Hall & Stewart LLP and William Blair & Company advised Mailgun on the latest deal, while Thoma Bravo was counselled by Goodwin Procter LLP and Harris Williams LLC.