Thoma Bravo is considering a potential sale of Cority, a sustainability compliance software company, with hopes of achieving a valuation of around $2 billion, including debt. The private equity firm has enlisted Goldman Sachs to manage the sale process, which may attract interest from other private equity firms.

The anticipated valuation for Cority is based on a multiple of over 20 times its 12-month earnings before interest, taxes, depreciation, and amortization (EBITDA), which is approximately $90 million. However, sources indicate that no deal is guaranteed at this stage. Both Thoma Bravo and Goldman Sachs have declined to comment, and Cority has not responded to inquiries.

The compliance software sector has seen increased interest from private equity firms as companies invest more in technology for risk management and supply chain protection. For instance, EQT recently acquired Avetta for about $3 billion, highlighting the growing market for such software solutions.

Cority, headquartered in Toronto, provides software that helps companies track their environmental, social, and governance (ESG) initiatives. Additionally, its platform is utilized for monitoring employee health and ensuring regulatory compliance. The company serves over 1,500 clients across 120 countries, including major corporations like Merck, Volvo, and Dow Chemical.

Thoma Bravo, based in Chicago and managing approximately $142 billion in assets, is known for its active role in the software industry. Earlier this year, the firm took Everbridge private in a deal valued at around $1.8 billion and sold Instructure to KKR for $4.8 billion in July.