Blackstone-Led Creditors Take Over Ailing Software Firm Medallia

Medallia Inc.is being taken over by a group of creditors led by Blackstone Inc. after its owner Thoma Bravo said it wasn’t going to inject fresh cash into the ailing software-as-a-service company.

Blackstone, Apollo Global Management Inc. and FS KKR Capital Corp. will invest $150 million of new capital into the software firm, in a deal that will significantly curb its debt, Medallia said in a statement Wednesday. The software maker will use the freed-up capital and $500 million it has already committed to accelerate its artificial intelligence efforts, according to the statement.

Medallia, which makes software aimed at ...