Thoma Bravo to purchase SailPoint for $6.1 billion in cybersecurity push By Reuters

© Reuters. FILE PHOTO: A banner for Sailpoint Applied sciences Holdings Inc. is displayed on the entrance of the New York Inventory Alternate (NYSE) to rejoice the corporate’s IPO in New York, U.S. November 17, 2017. REUTERS/Brendan McDermid/File Picture

By Eva Mathews

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

Cybersecurity is a sizzling market proper now, having attracted billions of {dollars} in funding, because of a pandemic-led shift to distant working, in addition to the Russia-Ukraine battle that has led to a spike in cyberattacks.

With the latest purchase, Thoma Bravo will bolster its power within the security-focused house, the place it already has key investments in corporations like Barracuda Networks, Blue Coat Proofpoint (NASDAQ:), Sonicwall and Sophos.

Thoma Bravo, which manages greater than $103 billion in belongings, 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, which represents a premium of 31.6% as of Friday shut. Together with debt, the deal is valued at about $6.9 billion.

Shares of Austin-Texas primarily based SailPoint, based in 2005, had been buying and selling about 30% larger in early buying and selling on Monday. That they had misplaced about 9.2% in 2021.

SailPoint’s Chief Govt Officer Mark McClain stated the go-private deal, anticipated to shut within the second half of this 12 months, would permit the corporate to pursue long-term progress with larger flexibility and increase their markets on the again of extra capital from the personal fairness agency.

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

SailPoint focuses on software program associated to id and entry administration, that helps companies mitigate undesirable person entry and cut back the danger of delicate information leakage.