© Reuters. FILE PHOTO: 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, US November 17, 2017. REUTERS / Brendan McDermid / File Photo
(Reuters) – Private equity firm Thoma Bravo will acquire SailPoint Technologies for $6.12 billion, in a deal that underscores growing demand for security software as businesses continue to digital streamline their activities.
The shift to remote work caused by the pandemic, as well as the Russia-Ukraine conflict, has fueled a spike in cyberattacks and fueled demand for secure software companies.
SailPoint shareholders will receive $65.25 per share in cash, the cybersecurity company said on Monday, representing a premium of 31.6% through the end of Friday. . The enterprise value of this deal is about 6.9 billion USD.
Shares of Austin-Texas-based SailPoint were up 26% pre-market. They have lost about 9.2% in 2021.
SailPoint founder and CEO Mark McClain said the deal, expected to close in the second half of this year, will allow them to pursue a long-term growth trajectory with more flexibility, expanding markets market and accelerate innovation in identity security.
SailPoint specializes in identity and access management related software, helping businesses reduce unwanted user access and reduce the risk of sensitive data leakage.
Thoma Bravo, which manages more than $103 billion in assets, is largely focused on software and technology companies. It has doubled its investments in the sector.
Last year, they bought Proofpoint (NASDAQ:) Inc in an all-cash deal that valued the cybersecurity company at around $12.3 billion.. They agreed to buy the software maker. Anaplan (NYSE 🙂 Inc for $9.65 billion in March.