Business

U.S. Private Equity Giant Thoma Bravo Is Acquiring SailPoint for $6.9 Billion

Brendan McDermid | Reuters
  • U.S. private equity giant Thoma Bravo is acquiring SailPoint in an all-cash deal worth about $6.9 billion, the cybersecurity company announced Monday.
  • The move, which will see Thoma Bravo pay $65.25 per share in cash, sent Sailpoint stock soaring.
  • Thoma Bravo's deal to take the company private highlights the growing demand for enterprise security software.

U.S. private equity giant Thoma Bravo is acquiring SailPoint in an all-cash deal worth about $6.9 billion, the cybersecurity company announced Monday.

Thoma Bravo's deal to take the company private highlights the growing demand for enterprise security software. Several companies are still operating remotely due to the Covid pandemic, and the Russia-Ukraine war has further sparked fears of cyberattacks.

Thoma Bravo will pay $65.25 per share in cash, sending SailPoint stock soaring 29%.

SailPoint, founded in 2005, provides software for identity and access management to help organizations mitigate security risks. The company went public in 2017.

SailPoint founder and CEO Mark McClain said in a statement the transaction will allow the company to pursue its long-term growth trajectory with greater flexibility, expand its markets and accelerate innovation in the sector.

It's the latest in a string of acquisitions for Thoma Bravo. It follows its $10.7 billion purchase of Anaplan, an enterprise software firm. Last year, the company acquired cybersecurity company Proofpoint for about $12.3 billion. The company has 24 security-focused firms in its portfolio, including SailPoint, according to the company's website.

The SailPoint transaction is expected to close in the second half of 2022. SailPoint's board has approved the deal, but it is still subject to the approval of shareholders and regulatory review. Morgan Stanley is acting as a financial advisor.

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