Proofpoint sells up to Thoma Bravo for $12.3bn

Cybersecurity company enters definitive agreement to take company private

Proofpoint has solf up to private equity giant Thoma Bravo for $12.3bn.

The cybersecurity firm's shareholders are set to receive $176 per share in cash, representing a premium of approximately 34 percent over its closing share price on April 23.

"We believe that as a private company, we can be even more agile with greater flexibility to continue investing in innovation, building on our leadership position and staying ahead of threat actors," said chairman and CEO of Proofpoint Gary Steele.

"Thoma Bravo is an experienced software investor, providing capital and strategic support to technology organisations, and our partnership will accelerate Proofpoint's growth and scale at an even faster pace.

"This is an exciting new chapter for Proofpoint that would not have been possible without our employees' hard work and commitment to our customers, partners and each other."

Proofpoint's valuation at $12.3bn dwarfs those of Symantec and McAfee, which both sold up to larger rivals or private equity for mouth-watering sums of money.

Last month, McAfee sold its enterprise businesses for $4bn to a consortium headed by Symphony Technology Group. And in 2019 Broadcom completed the acquisition of Symantec's enterprise business, in a deal worth $10.7bn.

Seth Boro, a managing partner at Thomas Bravo, said: "Proofpoint has achieved tremendous outcomes for customers around the world and we're excited to partner with this talented team at a moment when organisations need innovative solutions to navigate an increasingly treacherous cybersecurity environment.

"Proofpoint's opportunity as a privately held company is incredibly compelling and we look forward to working closely with them to drive continued business growth and deliver world-class advanced threat protection to even more customers in even more ways."

Proofpoint's board of directors unanimously approved the sale and is recommending that shareholders too vote in favour of the agreement when a special meeting is called.

The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions, including approval by Proofpoint shareholders and receipt of regulatory approvals.