Private equity firm Thoma Bravo revealed it is set to buy SailPoint Technologies, a leading cybersecurity firm, for $6.12 billion.
Thoma Bravo will boost its presence in the security-focused space, where it already has key investments in firms including Proofpoint, Barracuda Networks and Sophos.
Thoma Bravo, which manages more than $103 billion in assets including leading software firms, was the majority stakeholder in SailPoint prior to its initial public offering in 2017. It exited from its position by the end of 2018, Reuters reported.
Austin, Texas-based SailPoint’s shareholders will receive $65.25 per share in cash, the company said on Monday, representing a premium of 31.6 percent as of Friday close. Including debt, the deal is valued at about $6.9 billion.
The deal could help SailPoint accelerate its transition to a software as a service (SaaS) model without the scrutiny of being a public company.
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 flexibility and expand their markets on the back of additional capital from the private equity firm.
“We’re about 10 percent penetrated in our target market. We have a lot of room to grow in terms of what we add to our portfolio,” Mark McClain said.
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.