Private equity firm Thoma Bravo has acquired a majority stake in Mailgun, a US-based email automation platform spun off by cloud services provider Rackspace.
The terms of the deal were not disclosed and Mailgun did not reveal which investors would exit, though investment firm Turn/River will retain its minority stake in the company.
Founded in 2010, Mailgun provides tools that enable developers to build email functionality directly into their applications, allowing companies to create, execute and measure the performance of email campaigns. It has more than 150,000 business customers.
The company had raised undisclosed amounts from Y Combinator and SV Angel when it was acquired by Rackspace in 2012 for an undisclosed sum. It was spun out in 2017 with a $50m round led by Turn/River and backed by venture capital fund Scaleworks and RackSpace itself.
Mailgun plans to use the new funding to further develop its communication tools. CEO William Conway said in a blog post: “We will be investing millions in the development of products you can use to enhance your deliverability, gain more insights into your emails and deliver an unparalleled experience for your customers.
“We are also doubling down on customer success and enablement to ensure our customers have exactly what they need to scale their communications.”