A banner for Sailpoint Technologies Holdings Inc. is displayed on the front of the New York Stock Exchange (NYSE) to celebrate the company's IPO in New York, U.S. November 17, 2017. REUTERS/Brendan McDermid/File Photo
April 11 (Reuters) – Private equity firm Thoma Bravo will acquire SailPoint Technologies (SAIL.N) for $6.12 billion, the cybersecurity firm said on Monday, in the latest deal that underscores the heightened interest in the security software market.
In buying Austin, Texas-based SailPoint, Thoma Bravo will bolster its strength in the security-focused space, where it already has key investments in firms including Proofpoint Inc, Barracuda Networks and Sophos.
Shares of SailPoint, founded in 2005, closed at $64.05 on Monday, a 29% jump from Friday.
Cybersecurity has been a hot sector for buyouts thanks to a COVID-19 pandemic-led shift to remote working as well as the Russian invasion of Ukraine that has led to a spike in cyberattacks. Datto, a security solutions provider, has also been taken private in a $6.2 billion deal by investors led by Insight Partners on Monday.
Thoma Bravo, which manages more than $103 billion in assets, was the majority stakeholder in SailPoint prior to its initial public offering in 2017. It exited from its position by the end of 2018.
SailPoint shareholders will receive $65.25 per share in cash, the company said on Monday, representing a premium of 31.6% as of Friday close. Including debt, the deal is valued at about $6.9 billion.
Sources said the deal could help SailPoint accelerate its transition to a software as a service (SaaS) model without the scrutiny of being a public company, and fund potential transformative acquisitions with the dry powder from Thoma Broavo.
SailPoint's Chief Executive Officer Mark McClain said the go-private deal, expected to close in the second half of this year, would allow the company to pursue long-term growth with greater flexibility and expand their markets on the back of additional capital from the private equity firm.
"We're about 10% penetrated in our target market. We have a lot of room to grow in terms of what we add to our portfolio," McClain said.
SailPoint specializes in software related to identity and access management that helps businesses mitigate unwanted user access and reduce the risk of sensitive data leakage. SailPoint shares had lost about 9.2% in 2021.
Our Standards: The Thomson Reuters Trust Principles.
Subscribe to our newsletter to get all the news you need to start your day.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved
