Medallia agreed on 17 June to a recapitalisation that transfers ownership of the customer experience software company from Thoma Bravo to a lender group led by Blackstone, Apollo and FS KKR Capital Corp.
Why Lender group led by Blackstone, Apollo and FS KKR Capital Corp is buying Medallia, Inc.
Medallia said the deal would strengthen its balance sheet and accelerate investment in AI-led experience management, including generative AI, automation and enterprise integrations. Blackstone described Medallia as a profitable business serving many of the world's largest companies.
“Closing this transaction is a defining moment for Medallia,”
Deal terms and financing
The lenders are contributing US$150m of new capital, and the transaction significantly reduces Medallia's outstanding debt; neither the debt cut nor a valuation was disclosed. Thoma Bravo, which bought Medallia for about US$6.4bn in 2021, chose not to inject further equity, opening the way for the creditor-led restructuring.
Regulatory approvals and timing
The company initially expected closing before the end of 2026; it announced completion on 3 August 2026.
Market context
Medallia's software collects and analyses customer and employee feedback for large enterprises. The deal is an example of private credit lenders taking control of a sponsor-owned software company rather than forcing a sale.
