Consultancy specialist Thoughtworks is being taken private for $1.7 billion, as its new restructuring plan now will “impact” hundreds of employees.

Top Amazon Web Services and Google partner Thoughtworks is being taken private by Apax Partners in a deal worth $1.75 billion as the IT consultancy also unveiled a new plan that will impact hundreds of employees.

The Chicago-based company is a Premier partner for both AWS and Google Cloud, while it also partners with Microsoft and Databricks.

Last year, Thoughtworks acquired all-star AWS partner Itoc to boost its AWS business in Australia. In April, Thoughtworks also acquired AI model specialist Watchful to boost its artificial intelligence capabilities.

[Related: AWS Vs. Microsoft Vs. Google Cloud Earnings Q2 2024 Face-Off]

The solution provider specializes in various cloud services and AI offerings from AWS, Google and Microsoft.

Apax Partners plans to purchase all outstanding shares of Thoughtworks common stock for $4.40 per share.

Restructuring Plan To ‘Impact’ Hundreds Of Employees

On Monday, Thoughtworks also unveiled an updated restructuring plan that the company says will help it save around $90 million.

“We anticipate our additional cost reduction efforts to impact approximately 6 percent to 7 percent of our headcount globally,” said Thoughtworks in a statement.

Thoughtworks did not respond for comment by press time if these impacted employees are being laid off.

Thoughtworks currently has over 10,500 employees across 19 counties. A six- to seven- percent staff reduction is equal to between 630 to 735 employees.

Thoughtworks Stock Surges, But Fall Below Initial IPO

The deal comes three years after Thoughtworks debuted on the stock market at around $34 per share in September 2021. The company’s stock fell drastically throughout 2022 and never rebounded.

Thoughtworks stock (TWKS) increased 26 percent on Monday after the Apax news was released. The stock is now trading at around $4.30 per share as of Monday afternoon.

Thoughtworks Q2 2024 Earnings Results

Thoughtworks released second quarter 2024 financial results on Monday.

The company generated $252 million in revenue, down 12 percent year over year.

Thoughtworks’ gross profit was down 23 percent year over year to $70 million in Q2 2024. The company has approximately $48 million in cash and cash equivalents as of June, along with total outstanding debt of $292 million.

New CEO

In June, Thoughtworks’ longtime CEO, Guo Xiao, stepped down from his role as director and CEO.

Thoughtworks hired a former top executive at Accenture, Mike Sutcliff, as its new CEO.

Regarding the move to become private, Sutcliff said he’s “confident” the move will aid minority stockholders.

“Apax has been a longstanding strategic partner for Thoughtworks. With their continued support, we plan to make the necessary long-term investments and advance our vision of being a stronger, strategic partner for our clients,” Sutcliff said.

The transaction has been unanimously recommended by a special committee of the Thoughtworks Board of Directors.