May 20, 2022

Private equity firm Thoma Bravo has announced plans to acquire cybersecurity firm SailPoint Technologies for $6.12 billion, further adding to it’s holdings in the security software industry.

Thoma Bravo already has investments in fellow security firms Proofpoint Inc, Barracuda Networks and Sophos, and is now seeking to incorporate Texas-based SailPoint into its plans.

Shares of SailPoint jumped 29% from Friday’s close following the announcement.

The acquisition is the latest in a succession of buyouts in the cybersecurity industry. The move towards remote working has seen a much higher demand for online-based solutions, and the growing number of cyberattacks by suspected state operators has also increased interest in the sector. The SailPoint acquisition follows a similar deal to acquire web security firm Datto for $6.2bn announced this week.

SailPoint CEO Mark McClain said the deal would allow the company to pursue a larger market share, utilizing the cash injection to spur growth.

“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 develops software that helps secure user accounts and protect against unauthorized logins. Thoma Bravo previously held a stake in the firm prior to its 2017 IPO.

The deal will see SailPoint shareholders receive $65.25 per share in cash, a premium of 31.6% on Friday’s closing price. The total value of the deal including debt is approximately $6.9 billion.

The acquisition is expected to be completed in the second half of 2022. SailPoint’s board has approved the deal, but it is still subject to shareholder approval and regulatory review.