Cybersecurity provider Darktrace to be acquired by Thoma Bravo for $5.3 billion

Darktrace plc, a leading provider of enterprise cybersecurity software, today announced that announced Thomas Bravo announced that it has agreed to be acquired in a deal valued at $5.3 billion.

The all-cash deal values ​​Darktrace at $7.75 per share, a 20% premium to its previous unaffected share price. KKR and other shareholders with a combined 14.4% stake in the software maker have agreed to support the deal, Thoma Bravo said. To complete the deal, the private equity firm will need the support of Darktrace investors, who own at least 75% of the company's shares.

“Thoma Bravo has invested exclusively in software for over 20 years, and we look forward to leveraging our platform, operational expertise, and deep cybersecurity experience to support Darktrace’s growth.” said Andrew Almeida, Partner at Bravo.

Darktrace was founded in 2013 and listed on the London Stock Exchange eight years later. Currently, the company says more than 9,400 organizations are using its flagship product, a cybersecurity platform called his ActiveAI Security Platform. The software uses artificial intelligence to block cyberattacks across cloud environments, employee devices, and technology assets.

One subset of the platform's capabilities is focused on helping businesses remediate security weaknesses in their infrastructure. Darktrace says its algorithms can detect not only code vulnerabilities, but also cases where businesses are susceptible to social engineering attacks. Cybersecurity teams can use the software to launch simulation campaigns and assess employee reactions.

When it detects a cyberattack, ActiveAI Security Platform automatically takes steps to block it. The software can perform actions such as stopping malicious file downloads without any manual input from administrators. According to Darktrace, cybersecurity teams also have access to automated workflows generated by his AI to recover systems targeted by hackers.

The company's platform creates incident reports for every cyberattack it discovers. The report details what actions the hackers took, in what order, and which systems were affected. Cybersecurity teams can use that data to inform breach remediation efforts and identify ways to improve the company's incident response workflows.

Increased customer demand for Darktrace's software led to revenue of $176.1 million in the last quarter, an increase of 26.5% year over year. The company also revised upward its forecast for the current fiscal year, which ends June 30. Darktrace believes this financial momentum is part of a recent refresh in its go-to-market strategy, which likely contributed to the 20% premium Thoma Bravo offered for its shares. .

The private equity firm had previously sought to acquire Darktrace in 2022, but the deal fell through after the software maker deemed Thoma Bravo's offer too low.

The acquisition is expected to close in the second half of 2024. From there, Thoma Bravo will make investments to strengthen his Darktrace's cybersecurity capabilities and grow its market presence. “There will be no material restructuring or changes to Darktrace's Cambridge, UK headquarters or other business operations,” the private equity firm said.

Thoma Bravo added that it will “leverage its M&A expertise to grow” its cybersecurity platform, suggesting it plans to strengthen its software through acquisitions.Darktrace has only made one acquisition since its launch: €47.5 million. purchase Netherlands-based CyberSprint has developed a platform designed to help companies discover and fix vulnerabilities in their infrastructure.

Photo: London Stock Exchange/twitter