UserTesting Inc., a publicly traded provider of software testing tools, will be acquired by private equity firms Thoma Bravo and Sunstone Partners for approximately $1.3 billion.

UserTesting announced the transaction this morning. The $1.3 billion acquisition price values the San Francisco-based company at $7.5 per share, a 94% premium to the Wednesday closing price of its stock. The deal terms include a go-shop clause that specifies UserTesting can consider acquisition offers from other bidders through Dec. 10.

UserTesting provides a cloud-based platform that helps companies improve the interfaces of their applications and websites. Using the platform, a company can run focus group studies to identify areas for improvement in a software product’s interface. An online retailer, for example, could collect feedback from shoppers on ways that its online store may be improved.

UserTesting provides machine learning features to ease software testing initiatives. The company’s platform can map out customer journeys, the term for the series of actions that customers take in a website or an application before making a purchase. UserTesting’s machine learning algorithms also automatically extract key data points from the results of interface tests.

Thoma Bravo and Sunstone Partners expect to complete the acquisition in the first half of 2023. Afterwards, they plan to merge UserTesting with UserZoom Inc., another interface testing provider. UserZoom provides a cloud platform and consulting services that help companies find ways of improving their software products. 

Thoma Bravo acquired a majority stake in UserZoom earlier this year through a transaction that valued the company at $800 million. Sunstone Partners is also a stakeholder. Once the merger with UserTesting is complete, UserTesting Chief Executive Officer Andy MacMillan will lead the combined company.  

“We believe the combination of UserTesting and UserZoom will unlock tremendous value for our customers by further integrating and expanding the suite of research methods, testing types, and measurement options available,” MacMillan  stated.

UserTesting released its third quarter financial results today in conjunction with the acquisition announcement. The company logged an adjusted net loss of $6.4 million during the quarter, an improvement from the $8.7 million loss it had posted the same time a year earlier. UserTesting’s revenue increased 28%, to $49.4 million, in the same time frame.

“Our acquisition of UserTesting is a testament to our belief that customer experience is mission critical to organizations, and the combined company will be well-positioned to further market expansion, accelerate innovation, and provide even greater insights to its customers,” stated Thoma Bravo senior partner A.J. Rohde.

Thoma Bravo’s investments in UserTesting and UserZoom, two companies that focus on the same market segment, follow three similar acquisitions the investment firm made this year. The acquisitions also involved companies that focus on the same part of the enterprise software market. 

Since the start of the year, Thoma Bravo has bought three providers of identity management software for securing user access to enterprise applications. The private equity firm acquired SailPoint Technologies Holdings Inc. for $6.9 billion in April and later agreed to take Ping Identity Holding Corp. private at a $2.8 billion valuation. Most recently, Thoma Bravo this month inked a deal to acquire ForgeRock Inc. for $2.3 billion.

Image: UserTesting