Software investment company Thoma Bravo has announced its plans to acquire identity security company SailPoint Technologies in a deal valued at $6.9bn (£5.2bn).
The all-cash transaction, which is subject to approval from SailPoint stockholders, will see SailPoint Technologies become a privately held company.
As a result, SailPoint will benefit from its operating capabilities, capital support, and deep software expertise, Thoma Bravo said.
Mark McClain, CEO and founder at SailPoint said the deal delivers significant immediate cash value to its stockholders and maximises the value of their shares.
Under the terms of the deal, SailPoint stockholders will receive $65.25 per share in cash, representing a premium of 48% to SailPoint’s 90-day volume-weighted average price (VWAP).
“Identity security is core to cyber security and businesses have realised that to fuel business growth and success, they must start with identity as the foundation for secure business transformation,” said Mark McClain, CEO and founder at SailPoint. “We've experienced rapid growth and see a tremendous opportunity ahead of us to continue to set the pace in the identity security market as the category leader.”
Thoma Bravo managing partner Seth Boro described SailPoint as ideally positioned to capitalise on the large and growing demand from modern enterprises for robust identity security solutions that secure their business and reduce risk.
“Their market-leading identity security platform provides the autonomous and intelligent approach that the market requires today, especially among larger enterprises and as hybrid working becomes more common,” Boro said. “We look forward to partnering with Mark and his talented team to drive SailPoint’s next chapter of growth.”
The transaction is expected to close in the second half of 2022, with SailPoint continuing to operate out of its headquarters in Austin, Texas.