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Private equity firm Thoma Bravo to spend $12.3 billion on Proofpoint acquisition

Recently, a private equity firm Thomas Bravo has agreed with Proofpoint, where Thomas Bravo will monitor cybersecurity company becomes a wholly-owned unit.  

Thomas Bravo has agreed to spend around $12.3 billion on this acquisition. 

The agreement says, the Proofpoint will receive $176 per share, which will represent a premium of approx 34% over Proofpoint’s closing share price on 23 April 2021. 

Meanwhile commenting on the acquisition, the firm said in a recent statement- “Upon completion of the transaction, Proofpoint will become a private company with the flexibility and resources to continue providing the most effective cybersecurity and compliance solutions to protect people and organizations around the world”. It added- “Proofpoint will benefit from the operating capabilities, capital support, and deep sector expertise of Thoma Bravo — one of the most experienced and successful software investors in the world.”

Thomas Bravo is one of the well-known company tech space. It has acquired a sizable portfolio of tech brands, namely Qlik, Riverbed, Blue Coat, Flexera, and Barracuda Networks. 

Additionally, it has also developed a portfolio of security with the acquisitions of Sophos, ConnectWise, Imperva, Veracode, as well as automotive software firm Autodata. 

In March 2021, it declared it was adding data integration provider Talend for $2.4 billion. Talend, which went public in 2016, and stated this deal will position the firm for long-term expansion. 

Even the CEO and Chairman Gary Steele said- “We believe that as a private company, we can be even more agile with greater flexibility to continue investing in innovation, building on our leadership position, and staying ahead of threat actors”.

Proofpoint, a Sunnyvale, California based unanimously approved the agreement. It involves a 45-day “go-shop” period expiring on 9 June 2021. This allows the board and its members to actively initiate, solicit, and consider alternative proposals from 3rd parties, stated by Proofpoint.  

This announcement was released on the same day the firm’s first-quarter results were out.

Lastly, a net loss for the 3 months to March 31 was $45.3 million. Whereas, total revenue for the first quarter of 2021 was $287.8 million, an increase of 15% compared to last year. And GAAP gross profit for the first quarter this year was $214.3 million, which also more than 2020. 

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