Apax’s Thoughtworks Deal Hit With Pension Fund Court Challenge

Apax Partners LLP wielded its controlling stake in Thoughtworks Holding Inc. to back the tech company into a corner and take it private at a discount, according to an unsealed lawsuit.

Two pension funds are challenging the transaction in court, saying Apax exploited its inside track and dominance over the board to block competing bids and force through a $1.75 billion acquisition. The private equity firm knew its opportunistically timed buyout—for barely a third of what Apax agreed to pay a year earlier, before it “left the company at the altar"—reflected temporary headwinds pushing Thoughtworks shares to near their all-time ...