Thoma Bravo completes $6.9bn SailPoint acquisition
Wednesday 17th August 2022
Thoma Bravo has completed its acquisition of SailPoint Technologies Holdings, a specialist in enterprise identity security, in an all-cash transaction valued at approximately $6.9 billion.
Thoma Bravo — a leading software and technology PE fund with a 40+ year history of providing capital and strategic support to experienced management teams. CEO: Orlando Bravo; AUM: $114bn
SailPoint — a security cloud platform that uses AI machine learning to provide Identity management and governance for unstructured data access. SailPoint delivers the right level of access to the right identities and resources at the right time — matching the scale, velocity, and environmental needs of today’s cloud-oriented enterprise. Works with 43% of fortune 500 companies with names such as GE, Philips, Home Depot; has a retention rate of 95%. CEO: Mark McClain
Key points
- SailPoint stockholders are receiving $65.25 in cash for each share; delisted from the NYSE
- The deal is valued at $6.9bn and is reportedly being provided with $1.6bn in debt from Golub Capital, Owl Rock Capital and Blackstone Credit
- Announced on 11 April, shares jumped 29%, agreed on 30 June, and closed 17 August
Investment History
Thoma Bravo was the majority stakeholder in SailPoint prior to its initial public offering in 2017. It exited its position by the end of 2018.
Investment Rationale
Cybersecurity has been a hot sector for buyouts due to:
- Pandemic-led shift to remote working
- Russian invasion of Ukraine led to a spike in cyberattacks
e.g. Datto, a security solutions provider, has also been taken private in a $6.2 billion deal by investors led by Insight Partners on Monday.
SailPoint will bolster ThomaBravo’s strength in the security-focused space; bolstering ThomaBravo’s portfolio which includes Proofpoint Inc and Sophos; recent exit from Barracuda Networks.
Investment Objectives
- Accelerate transition to a software as a service (SaaS) model without public scrutiny
- Fund potentially transformative acquisitions
- Pursue long-term growth with greater flexibility and expand their markets
References
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- $6.2 billion acquisition of Datto, a security solutions provider, led by Insight Partners
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