US private equity group Thoma Bravo is acquiring cyber security firm SailPoint technologies for $6.9 billion in the latest deal that underlines the heightened interest in the security software sector.
In acquiring the Texas-based SailPoint, Thoma Bravo will reinforce its presence in the security software sector, where it already has critical investments in firms including Barracuda Networks, Proofpoint Inc., and Sophos.
SailPoint began in 2005 in Austin, Texas. On Monday, the firm’s shares closed at $64.05, a 29% rise from its Friday prices.
Thoma Bravo, which manages over $100 billion in assets, will pay $65.25 a share for the cybersecurity firm in cash, representing a premium of 31.6% as of Friday’s close. Including SailPoint’s prevailing debt, the deal is valued at nearly $6.9 billion.
Cybersecurity is currently a hot sector as firms try to protect themselves against increasingly sophisticated attackers. Therefore, the industry is attracting billion in startup investment, while private equity firms are also jumping on the bandwagon.
Sources report that the acquisition could help SailPoint accelerate its transition to a software as a service (SaaS) model without the scrutiny of being a publicly-traded firm.
SailPoint specializes in access and identity management software that enables businesses to mitigate unwanted user access and reduce sensitive data leakage.