03:07 PM EDT, 08/05/2024 (MT Newswires) -- Thoughtworks ( TWKS ) agreed to be taken private by an affiliate of funds advised by majority shareholder Apax Partners in a $1.75 billion deal while the technology consultancy posted an unexpected second-quarter loss.

Thoughtworks ( TWKS ) is being scooped up at $4.40 per share, representing a premium of 30% to its closing stock price on Friday, according to a statement released Monday. The share price was up 27% in afternoon trade.

Apax will buy all of the outstanding shares it does not already own. As of year-end 2023, Apax owned a roughly 61% stake in Thoughtworks ( TWKS ), according to the tech consultancy's Form 10-K filed earlier this year. Apax will fund the acquisition with fully committed equity financing.

"We believe that it is in the interest of all stakeholders for the company to return to private ownership to allow the organization to re-focus on growth," said Apax Partner Rohan Haldea, a non-executive director on the Thoughtworks ( TWKS ) board.

The transaction provides "immediate and fair value" to Thoughtworks' ( TWKS ) minority holders, Chief Executive Mike Sutcliff said in a statement.

The deal is expected to close in the fourth quarter of this year, subject to customary closing conditions. Upon completion, Thoughtworks ( TWKS ) will be delisted from the Nasdaq.

For the second quarter, Thoughtworks ( TWKS ) unexpectedly swung to an adjusted per-share loss of $0.03 from a $0.03 profit a year earlier. The market view was for a break-even point. Revenue fell about 12% to $251.7 million, narrowly ahead of the $251.4 million average analyst estimate on Capital IQ.

Thoughtworks ( TWKS ) is targeting $85 million to $95 million in additional savings, bringing the total under a restructuring program to between $185 million and $210 million. The company expects to reduce its global headcount by 6% to 7%, saying the restructuring program will be completed by the end of October.

Price: 4.30, Change: +0.91, Percent Change: +26.70