Thoma Bravo is exploring a sale of Foundation Software that could value the construction software company at more than $2bn, according to sources cited by Reuters. Foundation Software builds accounting, payroll, project management, and field operations software for construction contractors, with a particular focus on small and midsize specialty firms. It generates more than $200m in annual revenue and upwards of $100m in EBITDA.

Founded in 1985 and based in Strongsville, Ohio, the business was acquired by Thoma Bravo through a strategic growth investment in 2020. Private equity software dealmaking has picked up as financing markets improve and demand for profitable, cash-generative vertical software companies encourages sponsors to pursue exits. For a firm such as Thoma Bravo, which has built its reputation on software, that backdrop could be an opportunity to return capital to investors.

Thoma Bravo has been actively monetising software holdings, agreeing in August to sell a majority stake in construction materials software provider Command Alkon to Francisco Partners. Earlier in the year, it also agreed to sell Heavy Construction Systems Specialists, a provider focused on the heavy civil construction industry, to Germany’s Nemetschek Group in a deal reported to be worth more than €2bn.