Thoma Bravo is preparing to sell software maker ABC Fitness for $3 billion, sources say

NEW YORK: Thoma Bravo is preparing to consider options, including a potential sale of ABC Fitness Solutions, which could value the provider of software to health clubs and gyms at about $3 billion, including debt, according to people familiar with the matter.

The tech buyout firm could begin the sale process for ABC Fitness in early 2025, sources said, warning that Thoma Bravo’s plans could change.

Thoma Bravo expects ABC Fitness to be valued at about 25 times the company’s projected earnings before interest, taxes, depreciation, and amortization (EBITDA) of about $120 million next year, said the sources, who asked not to be identified because the talks are confidential.

Thoma Bravo declined to comment. ABC Fitness did not respond to a request for comment.

Founded in 1981, ABC Fitness provides software and payment processing services to fitness clubs, gym operators, and personal trainers. Its software helps gym owners track workouts and manage their businesses.

ABC Fitness, based in Frisco, Texas, processes about $11.5 billion in payments annually for about 30,000 gyms, studios and fitness clubs in 100 countries, according to its website.

Thoma Bravo acquired the company in 2018 for an undisclosed amount.

Payments technology has been a bright spot in dealmaking in recent months. In July, Genstar Capital acquired a stake in payment processor AffiniPay in a deal valued at nearly $3 billion.

Reuters reported this month that Flywire, a payments processor for the education, healthcare and travel industries, was considering a sale after generating takeover interest.