Private equity firm acquires Austin-based cybersecurity firm SailPoint
Austin-based cybersecurity company SailPoint is being acquired by private equity firm Thoma Bravo for $6.9 billion, the company announced Monday.
SailPoint was founded in 2005 by CEO Mark McClain. The company specializes in identity and access management software, and went public in 2017 with an initial public offering of $240 million.
Thoma Bravo had been the majority stakeholder in the company when SailPoint went public, but no longer was by the end of 2018. In this latest deal, the equity firm will acquire SailPoint in an all cash transaction that is expected to close in the second half of 2022. Thoma Bravo plans to take SailPoint private after the transaction closes.
More:Amid pandemic, Austin's tech sector has quietly boomed
McClain said identity security is core to cybersecurity and businesses are realizing that it is a necessity for business growth.
“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," McClain said in a written statement. "The transaction will also allow us to pursue our long-term growth trajectory with greater flexibility and effectiveness to support our customers, expand our markets, and accelerate innovation in identity security with the backing of a strong financial partner with deep sector expertise.”
McClain said the transaction will also give the company stockholders immediate cash value and will maximize the value of their shares. Shareholders will receive $65.25 per share in cash, the company said. The company's stock rose nearly 30% Monday morning, reaching a high of $64.39, following the news.
Andrew Almeida, a partner at Thoma Bravo, said SailPoint is a clear leader in identity security software.
More:Bumble's $2.15 billion IPO is biggest in Austin's history
"As digital transformation becomes imperative for enterprises of all sizes to remain competitive, SailPoint’s innovative products provide the foundation for a robust security infrastructure that keeps employees and sensitive information safe," Almeida said. We are excited to leverage Thoma Bravo’s deep software and operational capabilities to support SailPoint’s mission to be the de facto identity security platform player of choice."
Last year SailPoint reported revenue of $439 million, with fourth-quarter revenue growth across its product offerings. At the time McClain said the company’s performance reinforced the belief that security-as-service-based identity security is a priority for large enterprise customers. For 2022, the company predicted revenue of $513 million to $521 million.
This is a developing story and will be updated.
Gloss