Thoma Bravo acquires Darktrace at 44% premium 

On Friday, private equity company Thoma Bravo decided to purchase Britain’s Darktrace for around $5.32 billion in cash, saying it would use its software expertise to drive development at the Mike Lynch-backed cybersecurity specialist.

Deal Overview 

Thoma Bravo, a prominent software investment firm, has reached an agreement to acquire Darktrace, a leading cybersecurity company, at a price of $7.75 per share. 

This represents a significant 44% premium to Darktrace’s average share price over the past three months. The announcement of the acquisition led to a 16% surge in Darktrace’s share price, reaching 601 pence.

Darktrace’s Cybersecurity Innovation 

Darktrace, founded in 2013 with support from tech entrepreneur Mike Lynch, stands at the forefront of cybersecurity innovation. 

Utilizing artificial intelligence, Darktrace specializes in detecting attacks and vulnerabilities within IT networks, adopting an approach that focuses on internal threat detection rather than relying solely on perimeter defenses.

Also read: SKREWBALL WHISKEY PARTNERS WITH JOEY FATONE FOR EXCLUSIVE KENTUCKY DERBY HAT

Thoma Bravo’s Strategic Vision 

Andrew Almeida, a partner at Thoma Bravo, highlighted Darktrace’s position as a leader in cybersecurity, emphasizing the firm’s commitment to leveraging its extensive platform, operational expertise, and cybersecurity experience to support Darktrace’s growth trajectory.

Background and Ownership 

Darktrace initially listed its shares at 250 pence in April 2021. Despite doubling in value over the past year, analysts note that Darktrace’s stock performance has trailed behind its U.S. counterparts. 

Concerns surrounding former tech entrepreneur Mike Lynch, who faces fraud charges in the U.S. related to his former company Autonomy, have contributed to investor apprehension. Lynch, who no longer has any role at Darktrace, retains a 3.9% ownership stake, while his wife holds a 2.9% stake, according to LSEG data.

Previous Acquisition Attempt 

Thoma Bravo had previously engaged with Darktrace for a potential acquisition in 2022, although discussions at that time did not culminate in an offer.

Conclusion 

The acquisition of Darktrace by Thoma Bravo at a substantial premium underscores the growing significance of cybersecurity in the digital landscape. 

Darktrace’s innovative approach to threat detection combined with Thoma Bravo’s strategic resources positions the company for continued growth and leadership in the cybersecurity domain.