Apps & Software

Cybersecurity Firm Proofpoint Sells to Private Equity for $12.3 Billion in Cash

Thinkstock

Proofpoint Inc. (NASDAQ: PFPT) announced Monday morning that it has agreed to be acquired by private equity firm Thoma Bravo in an all-cash transaction that values Proofpoint at $12.3 billion. Thoma Bravo will pay $176 per share in cash for the cybersecurity firm, a premium of 34% over Proofpoint’s closing price on Friday. Premarket trading in Proofpoint shares was temporarily halted Monday morning.

A 45-day “go-shop” period expiring on June 9 is also part of the deal. Proofpoint may actively “initiate, solicit and consider alternative acquisition proposals.” The announcement did not include any mention of a breakup fee if the company should choose another offer.

Gary Steele, board chair and CEO of Proofpoint, commented, “[I]n 2020 we generated more than $1 billion in annual revenue – making Proofpoint the first SaaS-based cybersecurity and compliance company to reach that milestone. 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.”

Seth Boro, a Managing Partner at Thoma Bravo added, “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 reported quarterly results Monday morning that beat per-share earnings estimates by 22.5% and revenue estimates by 2%. Revenue rose by 15% year over year in the quarter.

The transaction is expected to close in the third calendar quarter, subject to the usual and customary approvals.

Proofpoint’s stock closed at $131.78 on Friday and, once trading resumed Monday morning, the stock shot nearly 32% higher to trade at $173.79. The stock’s 52-week range is $91.60 to $140.91, and the consensus price target was $149.33.

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.