Thoma Bravo to Acquire Darktrace for $5.3 Billion

Thoma Bravo, a private equity firm, has reached an agreement to acquire Darktrace, a cybersecurity company based in the United Kingdom, for a cash price of $5.32 billion. According to Thoma Bravo, the offer represents a premium of 44% over the average share price of Darktrace over the past three months. Darktrace uses artificial intelligence to identify vulnerabilities and attacks within IT networks. The company's shares increased by 18% following the news.

Despite concerns regarding Mike Lynch, Darktrace has performed well among recent London debuts. Analysts believe the pricing does not reflect meaningful synergies and could attract potential trade buyers like Palo Alto. Thoma Bravo aims to maintain Darktrace's headquarters in the UK and has the support of key shareholders, including KKR fund and Summit Partners.

The board of directors of Darktrace previously declined suggested bids by Thoma Bravo. However, the company now believes that its shares are undervalued and sees a cash offer as a confidence booster for investors. The deal requires backing from shareholders holding 75% of Darktrace's shares.

In 2020, Thoma Bravo acquired Sophos for $3.9 billion and aims to leverage its software experience to accelerate Darktrace's expansion. Lynch, no longer employed by Darktrace, owns 3.9% of the company, while his wife owns 2.9%.