Proofpoint has entered into an agreement with Thoma Bravo whereby the cybersecurity firm will become a fully-fledged entity of the private equity firm.
Thoma Bravo spent approximately $ 12.3 billion for this acquisition.
Under the terms of the deal, all in cash, Proofpoint shareholders will receive $ 176 per share. The company says this represents a premium of around 34% over the closing price of the Proofpoint share on April 23, 2021.
Large numbers of acquisitions
“Upon completion of the transaction, Proofpoint will become a privately held company with the flexibility and resources to continue to provide the most effective cybersecurity and compliance solutions to protect people and organizations around the world,” the company says. in a press release. “In addition, Proofpoint will benefit from the operational capabilities, capital support and in-depth industry expertise of Thoma Bravo – one of the most experienced and successful software investors in the world. “
Thoma Bravo is no stranger to the tech market. The company has acquired a significant portfolio of technology brands, including Qlik, Flexera, Riverbed, Blue Coat and Barracuda Networks. Thoma Bravo has also built a portfolio of security brands with the acquisition of Sophos, Veracode, ConnectWise and Imperva, as well as automotive software company Autodata.
Last month, Thoma Bravo announced the acquisition of data integration provider Talend for $ 2.4 billion. Talend, which went public in 2016, said the transaction will position the company for long-term growth and provide the capital and resources necessary to execute its market strategy.
The king of cybersecurity in SaaS mode
In 2020, Proofpoint generated more than $ 1 billion in annual revenue, a milestone that according to Gary Steele, CEO of the company, has made it the premier cybersecurity and compliance company in SaaS mode.
“We believe that as a private company, we can be even more agile, with greater flexibility to continue to invest in innovation, to strengthen our leadership position and to stay one step ahead of the players in the threat, ”defends Gary Steele.
Proofpoint’s board of directors unanimously approved the deal.
The agreement includes a 45-day go-shop period expiring on June 9, 2021, which allows the board of directors and its advisers to initiate, solicit and actively consider alternative acquisition proposals of from third parties, says Proofpoint.
The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions, including approval by Proofpoint shareholders and receipt of regulatory clearances. Proofpoint will also continue to be headquartered in Sunnyvale, California. The announcement was made the same day the company’s first quarter results were released.
The net loss for the three months, as of March 31, was $ 45.3 million. Total revenue for the first quarter of 2021 was $ 287.8 million, an increase of 15%, from the $ 249.8 million reported for the first quarter of 2020. GAAP gross profit for the first quarter of 2021 was $ 214.3 million, up from the $ 180.8 million reported a year earlier. Non-GAAP gross profit was $ 232 million.