The AI-Driven Transformation of Customer Experience Software: Thoma Bravo's Strategic Acquisition of Verint and the Reshaping of the Sector by Private Equity

In the evolving landscape of enterprise software, private equity firms are no longer mere financial engineers. They are now architects of technological transformation, leveraging artificial intelligence (AI) to redefine entire industries. Thoma Bravo's $2 billion acquisition of Verint Systems in 2025 is a case study in this new paradigm. By acquiring a leader in customer experience (CX) automation and integrating it into a broader AI-driven ecosystem, Thoma Bravo exemplifies how private equity is reshaping the CX software sector through strategic consolidation and the re-rating of legacy platforms.

The Strategic Logic of the Verint Acquisition

Verint's core offering—a CX automation platform with 50% of its annual recurring revenue (ARR) derived from AI—positions it as a critical asset in Thoma Bravo's portfolio. The firm's decision to acquire Verint at a 18% premium to its pre-announcement share price reflects confidence in its ability to scale AI-driven solutions for enterprise clients. By merging Verint with Calabrio, another Thoma Bravo portfolio company, the firm is creating a unified platform that combines AI-powered customer analytics with workforce optimization tools. This synergy is not accidental; it is a calculated move to address the dual challenges of customer retention and operational efficiency in an era where AI is no longer a novelty but a necessity.

The acquisition also underscores a broader trend: private equity's shift from capital allocation to innovation orchestration. Thoma Bravo's $184 billion in assets under management allows it to fund aggressive R&D initiatives, bypassing the short-term pressures of public markets. For Verint, this means accelerated development of AI models for predictive threat detection, real-time customer sentiment analysis, and automated compliance monitoring—capabilities that are increasingly critical in a post-pandemic economy.

The AI-Driven Re-Rating of Legacy Platforms

The Verint deal is part of a larger pattern of private equity re-rating legacy software platforms through AI integration. Consider Thoma Bravo's $12.3 billion acquisition of Dayforce, a cloud-based HCM platform with a 98% gross revenue retention rate and 31.7% adjusted EBITDA margin. Dayforce's valuation of 34.92x EV/EBITDA—far exceeding public peers like Workday (12.5x) and SAP SuccessFactors (10.2x)—reflects the market's willingness to pay a premium for AI-native platforms with recurring revenue models.

This re-rating is not arbitrary. AI-driven platforms like Dayforce and Verint offer defensible moats: high switching costs, scalable unit economics, and the ability to generate data-driven insights that enhance enterprise decision-making. For instance, Dayforce's AI-powered predictive analytics optimize talent management, while Verint's AI tools automate threat detection in customer service workflows. These capabilities create a flywheel effect: as AI models improve, they drive higher customer retention, which in turn funds further innovation.

The Valuation Gap: Private vs. Public Markets

The disparity between private and public market valuations for CX/HCM platforms is stark. Private equity firms are paying 25x–30x EBITDA for AI-native platforms, while public companies trade at 8.5x–12.5x. This gap reflects differing investor priorities: public markets prioritize near-term profitability, while private equity bets on long-term scalability. For example, Verint's AI ARR grew 24% year-over-year to $354 million in Q1 2026, yet its public shareholders received only $20.50 per share—a price that may not fully capture its future potential.

This valuation divergence is not without risk. If macroeconomic conditions deteriorate or AI-driven growth narratives falter, private equity's premium valuations could face pressure. However, the sector's resilience—evidenced by a 30% year-over-year increase in global M&A activity and $1 trillion in dry powder—suggests that private equity's AI-driven strategy is here to stay.

Investment Implications

For investors, the key takeaway is clear: the future of CX/HCM software lies in AI integration and recurring revenue models. Public companies with strong EBITDA margins and clear AI roadmaps—such as UltiPro or Cvent—may see re-rating as market sentiment evolves. Similarly, private equity-backed platforms like Dayforce and Verint offer a blueprint for how AI can transform legacy software into category-defining ecosystems.

However, caution is warranted. The AI-driven re-rating of CX platforms is not a universal truth; it depends on execution. Investors must scrutinize a company's ability to scale AI capabilities, maintain high retention rates, and navigate regulatory challenges (e.g., data privacy laws). Those who can identify undervalued public HCM/CX firms with strong AI integration may find compelling opportunities.

Conclusion

Thoma Bravo's acquisition of Verint is more than a financial transaction—it is a strategic statement about the future of enterprise software. By consolidating AI-native platforms and re-rating legacy systems, private equity is reshaping the CX sector in ways that public markets have yet to fully appreciate. For investors, the lesson is clear: the winners in this AI-driven megatrend will be those who recognize the strategic value of recurring revenue models and AI-enabled innovation. As the sector continues to evolve, the ability to distinguish between fleeting hype and enduring transformation will separate the astute from the complacent.