Global cybersecurity and compliance firm Proofpoint has entered into a definitive agreement to be acquired by tech-focused private equity investment firm Thoma Bravo in an all-cash transaction worth approximately $12.3 billion.
Under the terms of the agreement, Proofpoint shareholders will receive $176.00 per share in cash, representing a premium of approximately 34% over Proofpoint’s closing share price on 23rd April 2021.
SEE ALSO: Top 100 companies in the Middle East put customers at risk of email fraud: study
“Today’s announcement is a testament to the strength of Proofpoint’s people-centric approach to cybersecurity and compliance and underscores our important role preventing, defending and responding to today’s threats,” said Gary Steele, Chairman and CEO of Proofpoint.
“We have made tremendous strides in expanding the sophistication and scale of our offerings, and in 2020 we generated more than $1 billion in annual revenue – making Proofpoint the first SaaS-based cybersecurity and compliance company to reach that milestone.
“We believe that as a private company, we can be even more agile with greater flexibility to continue investing in innovation, building on our leadership position and staying ahead of threat actors.”
Upon completion of the transaction, Proofpoint will become a private company with the flexibility and resources to continue providing the most effective cybersecurity and compliance solutions to protect people and organisations around the world.
Additionally, Proofpoint will benefit from the operating capabilities, capital support and deep sector expertise of Thoma Bravo.
Seth Boro, a Managing Partner, Thoma Bravo, said, “Proofpoint places people at the centre of its compliance and security strategy and plays a vital role in helping enterprises protect their data. Thoma Bravo’s approach to value creation is rooted in partnering with the organisation in which we invest and looking for opportunities to both enhance their existing operations and build technology platforms that drive significant growth.
“Proofpoint’s opportunity as a privately held company is incredibly compelling, and we look forward to working closely with them to drive continued business growth and deliver world-class advanced threat protection to even more customers in even more ways.”
Proofpoint’s Board of Directors has unanimously approved the agreement with Thoma Bravo and recommends that shareholders vote in favour of the transaction at the Special Meeting of Shareholders to be called in connection with the transaction.
ALSO IN THE NEWS: Abu Dhabi-based AI firm G42 announces $800 million investment from Silver Lake
This is the second major cybersecurity acquisition for Thoma Bravo. In 2019, the company purchased cybersecurity and network security software developer Sophos for $3.9 billion.
