Cambridge-based cybersecurity and artificial intelligence firm Darktrace is being swallowed up by US suitors after agreeing a $5.3bn (£4.2bn) sale to US private equity business Thoma Bravo It is likely to become the latest British technology champion.
Darktrace co-founder and investor Mike Lynch, currently on trial for fraud and conspiracy in the US, agreed to an offer that was 44% higher than the average share price over the past three months.
Announcing the acquisition, the company launched a Parthian attack on the pressured London stock market, saying its technology, which Thomas Bravo described as “cutting edge”, was undervalued.
In a statement to investors, the Darktrace board said the company's “operational and financial results are not commensurately reflected in its valuation, and the stock trades at a significant discount to its global peer group.” ” he said.
The comments are likely to fuel fears that FTSE is leaking listings of big-name companies to the US in search of greater funding possibilities. Recent exits include semiconductor maker Arm Holdings, gambling company Flutter and building materials business CRH.
Shell has hinted it may exit the London stock market, and miner Anglo American on Friday rejected an offer from Australian-listed rival BHP but could succumb to a higher offer.
Darktrace said the offer from Thoma Bravo would give shareholders confidence in the value of their shares and allow the company to grow in a “stable and private” environment.
Thoma Bravo, which withdrew from previous takeover talks in 2022, values Darktrace at $7.75 per share, or about 620p in cash, compared to the 250p valuation it received when it listed in London in 2021. I made a presentation.
Despite being widely praised for its cybersecurity technology that uses AI to detect and eliminate threats within IT networks, analysts say Darktrace's reputation lags behind its peers. .
The company has struggled to overcome persistent concerns related to its founding co-investor, British tech entrepreneur Lynch. Lynch has no formal role in the company, but he and his wife, Angela Bakares, own a 6.8% stake in the company.
The couple will make a profit of just under £300m from the sale of their shares.
This could help Mr. Lynch finance his legal costs. Mr. Lynch is suspected of being a “mastermind” of a large-scale fraud case in which he was forced to pay a huge amount of money when the U.S. tech company Hewlett-Packard acquired his business, Autonomy, for $11.1 billion in 2011. Because I'm fighting against it. .
HP reduced the purchase price by $8.8 billion less than a year later, alleging serious accounting fraud by Mr. Lynch and several senior colleagues.
Lynch has always denied allegations of wrongdoing and maintains his innocence.
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Darktrace CEO Poppy Gustafson was considered a protégé of Lynch, but the co-founder investor and the company have distanced themselves during extradition battles and an ongoing trial. He emphasized that there is.
In a statement Friday, she said: “From our base in Cambridge, we are building a world-leading company using a unique form of artificial intelligence to address societal challenges in cybersecurity.
“This proposed proposal represents the next stage in our growth journey and we are excited about the many opportunities in front of us. As the threat of AI-powered cyber attacks increases In a growing world, our technology is more important than ever.
“In the face of this situation, we are focused on expanding our product portfolio, entering new markets and offering our customers, partners and colleagues.”
Chicago-based Thoma Bravo is one of the world's largest software and cybersecurity investors, with more than $138 billion in assets under management as of the end of 2023.
Andrew Almeida, partner at Thoma Bravo, said: “Darktrace is at the cutting edge of cybersecurity technology, and we have long admired its platform and artificial intelligence capabilities. We are accelerating to do so.”
