Thoma Bravo prepares $3 billion sale of software maker ABC Fitness, sources say

By Milana Vinn and David French

NEW YORK (Reuters) - Thoma Bravo is preparing to explore options including a potential sale of ABC Fitness Solutions that could value the software provider for health clubs and gyms at about $3 billion including debt, according to people familiar with the matter.

The technology focused buyout firm could kick off a sale process for ABC Fitness in early 2025, the sources said, cautioning that Thoma Bravo's plans could change.

Thoma Bravo is expecting to command a valuation for ABC Fitness equivalent to about 25 times the company's projected earnings before interest, tax, depreciation and amortization (EBITDA) of roughly $120 million next year, the sources added, requesting anonymity as the discussions 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 health clubs, gym operators, and personal trainers. Its software helps gym owners track workouts and manage their operations.

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

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

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

Reuters reported this month that Flywire, which helps process payments in the education, healthcare and travel industries, is exploring a sale after attracting takeover interest.

(Reporting by Milana Vinn and David French in New York; Editing by Jamie Freed)