By Eva Mathews and Krystal Hu
(Reuters) -Private equity firm Thoma Bravo will acquire SailPoint Technologies for $6.12 billion, the cybersecurity firm said on Monday, in the latest deal that underscores the heightened interest in the security software market.
In buying Austin, Texas-based SailPoint, Thoma Bravo will bolster its strength in the security-focused space, where it already has key investments in firms including Proofpoint (NASDAQ:PFPT) Inc, Barracuda Networks and Sophos.
Shares of SailPoint, founded in 2005, closed at $64.05 on Monday, a 29% jump from Friday.
Cybersecurity has been a hot sector for buyouts thanks to a COVID-19 pandemic-led shift to remote working as well as the Russian invasion of Ukraine that has led to a spike in cyberattacks. Datto, a security solutions provider, has also been taken private in a $6.2 billion deal by investors led by Insight Partners on Monday.
Thoma Bravo, which manages more than $103 billion in assets, was the majority stakeholder in SailPoint prior to its initial public offering in 2017. It exited from its position by the end of 2018.
SailPoint shareholders will receive $65.25 per share in cash, the company said on Monday, representing a premium of 31.6% as of Friday close. Including debt, the deal is valued at about $6.9 billion.
Sources said the deal could help SailPoint accelerate its transition to a software as a service (SaaS) model without the scrutiny of being a public company, and fund potential transformative acquisitions with the dry powder from Thoma Broavo.
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 greater flexibility and expand their markets on the back of additional capital from the private equity firm.
"We're about 10% penetrated in our target market. We have a lot of room to grow in terms of what we add to our portfolio," 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. SailPoint shares had lost about 9.2% in 2021.