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Thoma Bravo made several new deals and adjustments this week, repositioning itself in a fluctuating software market.

Why it matters: Even the biggest software players have to manage AI disruption.

Driving the news: This week, Thoma Bravo:

Partnered with Google Cloud to help its portcos adopt AI;

Agreed to merge construction software company HCSS; and,

Confirmed plans to wind down its growth equity business.

Zoom in: The multi-year agreement with Google Cloud makes the firm the latest to partner with a large AI player.

The partnership with Google Cloud will let the firms portfolio of cybersecurity companies — which generate roughly $8 billion in revenue — work to identify and mitigate evolving security risks with AI just as Anthropic's Mythos model has caused some panic.

Between the lines: The HCSS deal, valued at $2.4 billion, will see the heavy civil construction software company merge with a unit of Germany's Nemetschek Group for a 28% stake in the new combined business.

Thoma Bravo senior partner A.J. Rohde tells Axios the no-cash deal was not a reaction to the current market, but that he "would expect more of these kinds of deals" in an increasingly competitive market.

Zoom out: The wind-down of Thoma Bravo's growth equity business, confirmed by Axios Pro, comes nearly a year after the firm decided it wanted to focus on majority ownership deals, a source said.

By the numbers: The changes come as the S&P Software & Services Index is down about 25% in the last six months.

PE capital deployment in the sector in Q1 was only about $35 billion, well off the pace to hit the $227 billion invested all of last year, per PitchBook.

Yes, but: 90% of the names on a PitchBook list of take-private candidates are software stocks.

What they're saying: "There are the most incredible buying opportunities right now in the market," said cofounder and CEO Orlando Bravo this week at Semafor World Economy.

"You just need to know what you're looking at and what you're buying."

New software market makes even giants adapt

Thoma Bravo is repositing itself in a fluctuating software market.

Illustration of money being sucked into the void of a black hole. 

Thoma Bravo made several new deals and adjustments this week, repositioning itself in a fluctuating software market.Why it matters: Even the biggest software players have to manage AI disruption.

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New software market makes even giants adapt

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