In a transfer to place in place a key piece for its portfolio of cybersecurity corporations, non-public fairness agency Thoma Bravo has finalized plans to amass IAM (identification entry administration) safety vendor SailPoint in a go-private deal price $6.9 billion.
When accomplished, the deal, introduced Monday, would be the newest in a string of safety centered expertise acquisitions for the non-public fairness agency, which final 12 months bought cost safety supplier Bottomline Applied sciences for $2.6 billion in December and cybersecurity and compliance vendor Proofpoint for $12.3 billion in August, amongst different transactions, a few of which date again to 2016.
The phrases of the SailPoint deal characterize a 48% premium on the corporate’s present inventory worth, and Thoma Bravo stated in an announcement that the acquisition will see SailPoint function a lot as earlier than, however with “the flexibleness and assets to proceed offering industry-leading identification safety options to trendy enterprises around the globe.”
“Moreover, SailPoint will profit from the working capabilities, capital assist, and deep software program experience of Thomas Bravo,” the non-public fairness agency stated.
The deal was introduced only a day earlier than information broke that the non-public fairness agency was planning to divest itself of one other safety firm — Barracuda Networks, which Thoma Bravo took non-public for $1.8 billion in 2018. Thoma Bravo is close to a deal to promote Barracuda to KKR , one other non-public fairness firm, in line with revealed stories Tuesday. Thoma Bravo didn’t instantly touch upon how the Barracuda sale figures into the reshuffling of its safety portfolio.
IAM, although, has turn out to be an necessary piece in safety corporations’ choices. Just lately, for instance, endpoint safety vendor SentinelOne introduced plans to amass IAM supplier Attivo Networks for $616.5 million. Specifically, as distant work has expanded the boundaries of company community safety perimeters, assault vectors have multiplied, making identification entry administration an more and more essential threat-protection technique.
SailPoint affords identification governance, password administration, compliance controls, entry request and automatic provisioning providers.
Andras Cser, a vp and principal analyst at Forrester, stated that the SailPoint deal is an try to fill a gap in Thomas Bravo’s rising lineup of safety corporations, however that the outcomes from one of these sample could be blended.
“Plenty of occasions, [private equity will] construct a portfolio out of those acquisitions, they usually’re profitable,” he stated. “Generally, they purchase corporations that they suppose will make sense collectively they usually sadly do not.”
Personal fairness acquirers are typically centered on the underside line, in line with Cser. However, for the acquirees, going non-public can nonetheless be much less restrictive than being part of the demanding public inventory market.
“The attention-grabbing query is why SailPoint’s management goes with a non-public fairness agency, [instead of] issuing extra shares and sustaining transparency,” he stated. “It is sometimes as a result of, for those who’re a Wall Road-listed firm, you are required [to keep raising profit/revenue figures] so your means to innovate is likely to be lower than in a privately held firm.”
Thoma Bravo invested privately in SailPoint in 2014, Cser famous, years earlier than the corporate’s IPO in 2017, so the 2 corporations are already properly acquainted.
The deal remains to be topic to approval by SailPoint stockholders, and a “go-shop” interval will final till Might 16 — throughout that point, various acquisition proposals could be sought out and pursued, however Thoma Bravo stated that they nonetheless anticipate the deal to shut within the second half of 2022.
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