PE Firm Thoma Bravo To Buy Cybersecurity Company SailPoint In $7B Deal

  • M&A
  • April 12, 2022
  • 1774
  • 4 minutes read

Thoma Bravo, the American private equity giant, is on a tear, inking a stream of multi-billion-dollar deals. In late March, the firm agreed to buy Anaplan, a cloud software company, for $11bn. Now, barely three weeks later, it has tacked on another big acquisition; SailPoint Technologies (NYSE: SAIL), a cybersecurity company.

  • Thoma has agreed to acquire SailPoint for $65.25 in cash per share, representing a 48% premium to the company’s 90-day volume-weighted average price preceding the agreement. The cash payment amounts to $6.1bn. Including debt, the deal sums up to $6.9bn.

 

  • Thoma Bravo has a knack for cybersecurity companies. Including SailPoint, it’ll have two-dozen cybersecurity companies in its portfolio, according to the firm’s website. Last year, Thoma paid $12bn to buy Proofpoint Technologies, an enterprise security company. It also joined an investor group that took cybersecurity giant McAfee private in a $14bn deal last year.

SailPoint is a Texas-based company specializing in identity management for enterprises. The company posted $439mn in revenue in 2021, up 20% from 2020. It isn’t profitable; it posted a $62mn net loss in 2021, but its significant revenue growth pretty much makes up for it.

Thoma is paying a roughly 16x multiple to buy SailPoint, which is stellar for the company’s shareholders. SailPoint debuted on the public markets in 2017 at $12 per share and five years later is selling for over 5x that figure.  Unsurprisingly, SailPoint’s stock jumped 29% on Monday following the acquisition announcement, now trading near the agreed price.

  • Thoma Bravo manages over $100bn of assets, so a $6.9bn deal isn’t a big deal for the private equity firm. Moreover, Thoma has access to big lines of credit that it draws to finance acquisitions alongside investors’ money.

If all goes as planned, the acquisition will close in this year’s second half.

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