Thoma Bravo to take UK cybersecurity company Darktrace private in $5B deal | TechCrunch

darktrace It is set to go private in a deal that values ​​the UK-based cybersecurity giant at around $5 billion.

A newly formed entity called Luke Bidco Ltd, formed by private equity veteran Thoma Bravo, has made an all-cash bid of $7.75 (£6.20) per share, representing a 44% premium on its average price for the three-month period. Expires April 25th. However, this premium drops to just 20 per cent when compared to Darktrace’s closing price yesterday, as the company’s shares rose 20% to £5.18 in the past month.

Founded in Cambridge, UK in 2013, Darktrace is known for its AI-enabled threat detection smarts, which uses machine learning to identify abnormal network activity and thus prevent ransomware attacks, insider attacks, data breaches. And tries for a lot more. The company boasts big-name customers including Allianz, Airbus and the city of Las Vegas.

After raising nearly $230 million in VC funding and hitting $1.65 billion private valuationDarktrace went public on the London Stock Exchange in April, 2021 Opening day valuation $2.4 billion, Its shares reached an all-time high of £9.45 later that year, and fell to an all-time low of £2.29 the previous February, but they had been rising steadily since the start of the year and have not been below £4 since. Had fallen. Beginning of March.

Thoma Bravo’s full valuation based on the offering is $5.3 billion, known as a fully-diluted basis, which takes into account all convertible securities and is designed to give a more comprehensive view of the company’s valuation. Is. However, the enterprise value in this example is approximately $4.9 billion, which includes additional considerations such as debt and cash position.

There has been a spate of “take-private” deals recently Vista Equity is announcing plans this month Acquiring revenue optimization platform Model N in a $1.25 billion deal – its fifth take-private deal in 18 months. And last month, Thoma Bravo Found out it was taking Critical event management software company Everbridge goes private in a transaction worth $1.8 billion.

in one Investor Relations Document Published today, Thoma Bravo said that Darktrace represents “an attractive opportunity to increase our exposure” in the rapidly growing cybersecurity market.

“Darktrace is at the forefront of cybersecurity technology and we have long been fans of its platform and capabilities in artificial intelligence,” said Andrew Almeida, partner at Thoma Bravo. “The pace of innovation in cyber security is accelerating in response to cyber threats that are simultaneously complex, global and sophisticated.”

Separately, Darktrace said it had previously rejected Thoma Bravo’s approach on the grounds that the offers were too low – something the two have now apparently resolved with a revised bid.

Gordon Hurst, chairman of Darktrace, said, “The proposed offer represents an attractive premium and an opportunity for shareholders to receive the certainty of cash consideration at the fair value of their shares.” “The proposed acquisition will provide Darktrace access to a strong financial partner in Thoma Bravo, who has deep software sector expertise, which can enhance the company’s position as a best-in-class cyber AI business headquartered in the UK”

The deal is, of course, still subject to shareholder approval, but the companies said they expect to complete the transaction by the end of 2024.