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

By Eva Mathews

(Reuters) -Private equity firm Thoma Bravo will acquire cybersecurity firm SailPoint Technologies for $6.12 billion, the latest deal that underscores the heightened interest in the security software market.

Cybersecurity is a hot market right now, having attracted billions of dollars in investment, thanks to a pandemic-led shift to remote working, as well as the Russia-Ukraine conflict that has led to a spike in cyberattacks.

With the newest buy, Thoma Bravo will bolster its strength in the security-focused space, where it already has key investments in firms like Barracuda Networks, Blue Coat Proofpoint (NASDAQ:), Sonicwall and Sophos.

Thoma Bravo, which manages more than $103 billion in assets, was the majority stakeholder in SailPoint prior to its initial public offering in 2017. It exited from its position by the end of 2018.

SailPoint shareholders will receive $65.25 per share in cash, the company said on Monday, which represents a premium of 31.6% as of Friday close. Including debt, the deal is valued at about $6.9 billion.

Shares of Austin-Texas based SailPoint, founded in 2005, were trading about 30% higher in early trading on Monday. They had lost about 9.2% in 2021.

SailPoint’s Chief Executive Officer Mark McClain said the go-private deal, expected to close in the second half of this year, would allow the company to pursue long-term growth with greater flexibility and expand their markets on the back of additional capital from the private equity firm.

“We’re about 10% penetrated in our target market. We have a lot of room to grow in terms of what we add to our portfolio.”

SailPoint specializes in software related to identity and access management, that helps businesses mitigate unwanted user access and reduce the risk of sensitive data leakage.