British cybersecurity firm Darktrace has announced its sale to U.S. private equity giant Thoma Bravo for an all-cash offer of $5.315 million. This move comes as Darktrace shares were 17% higher in London trading, with investors set to receive $7.75 in cash for each share held. The sale is seen as a blow to the London Stock Exchange, where Darktrace listed in 2021 as a dynamic addition to a market largely dominated by “old economy” players. Darktrace cited its belief that it is undervalued in the UK as a reason for the sale, stating that its operational and financial achievements are not reflected in its valuation.
Specializing in artificial intelligence-based cybersecurity for large companies and events, Darktrace has roughly 2,300 employees worldwide. Thoma Bravo sees this acquisition as a way to increase its exposure to the growing cybersecurity market and to scale Darktrace’s business globally. The deal represents a 44.3% premium to the average volume-weighted Darktrace share price in the three months leading up to April 25. This sale highlights the attractiveness of cybersecurity firms to private equity investors and the increasing competition in the global cybersecurity market.
The acquisition by Thoma Bravo reflects a broader trend of private equity firms investing heavily in cybersecurity companies, as the demand for cybersecurity solutions continues to grow. Darktrace’s decision to sell to a U.S.-based private equity firm underscores its desire to tap into the resources and expertise of a larger player in the market. The sale also represents a significant shift for Darktrace, as it moves away from the London Stock Exchange where it was seen as a promising addition to a market dominated by traditional industries.
Darktrace’s decision to accept Thoma Bravo’s offer may also indicate the company’s confidence in its ability to accelerate its growth under new ownership. The acquisition could provide Darktrace with the capital and strategic support needed to expand its global reach and enhance its cybersecurity offerings. By aligning with a well-established private equity firm with a strong track record in the technology sector, Darktrace may be better positioned to capitalize on emerging opportunities in the cybersecurity market and solidify its position as a leading player.
Overall, the sale of Darktrace to Thoma Bravo represents a significant development in the cybersecurity industry and the broader tech market. As cybersecurity threats continue to evolve and intensify, companies like Darktrace play a crucial role in helping businesses protect their systems and data. The acquisition by a private equity firm like Thoma Bravo not only validates Darktrace’s innovative approach to cybersecurity but also signals a new phase of growth and expansion for the company. This deal highlights the potential for collaboration between established technology firms and private equity investors in driving innovation and driving value creation in the cybersecurity sector.
