Thoma Bravo to buy SailPoint for $6.1 billion in cybersecurity push

By Eva Mathews and Krystal Hu

-Personal fairness agency Thoma Bravo will purchase SailPoint Applied sciences for $6.12 billion, the cybersecurity agency stated on Monday, within the newest deal that underscores the heightened curiosity within the safety software program market.

In shopping for Austin, Texas-based SailPoint, Thoma Bravo will bolster its power within the security-focused house, the place it already has key investments in companies together with Proofpoint Inc, Barracuda Networks and Sophos.

Shares of SailPoint, based in 2005, closed at $64.05 on Monday, a 29% soar from Friday.

Cybersecurity has been a scorching sector for buyouts because of a COVID-19 pandemic-led shift to distant working in addition to the Russian invasion of Ukraine that has led to a spike in cyberattacks. Datto, a safety options supplier, has additionally been taken non-public in a $6.2 billion deal by buyers led by Perception Companions on Monday.

Thoma Bravo, which manages greater than $103 billion in property, was the bulk stakeholder in SailPoint previous to its preliminary public providing in 2017. It exited from its place by the top of 2018.

SailPoint shareholders will obtain $65.25 per share in money, the corporate stated on Monday, representing a premium of 31.6% as of Friday shut. Together with debt, the deal is valued at about $6.9 billion.

Sources stated the deal might assist SailPoint speed up its transition to a software program as a service (SaaS) mannequin with out the scrutiny of being a public firm, and fund potential transformative acquisitions with the dry powder from Thoma Broavo.

SailPoint’s Chief Government Officer Mark McClain stated the go-private deal, anticipated to shut within the second half of this yr, would enable the corporate to pursue long-term progress with larger flexibility and increase their markets on the again of extra capital from the non-public fairness agency.

“We’re about 10% penetrated in our goal market. We have now a whole lot of room to develop by way of what we add to our portfolio,” McClain stated.

SailPoint focuses on software program associated to id and entry administration that helps companies mitigate undesirable consumer entry and scale back the chance of delicate knowledge leakage. SailPoint shares had misplaced about 9.2% in 2021.