Thoma Bravo set to acquire cybersecurity firm darktrace in a $4.99bn all-cash deal

Thoma Bravo, a leading software investment firm, announced today that it has agreed to acquire all issued and to be issued ordinary share capital of Darktrace, a global leader in cybersecurity artificial intelligence, for an all-cash transaction. The acquisition values Darktrace at approximately $4,992 million, representing a substantial premium and reflecting the company’s strong position in the cybersecurity sector.

Acquisition Details and Market Impact

The offer price represents a 20% premium over Darktrace’s closing share price of 517 pence on the last trading day before the announcement, and a 148.1% increase over the IPO price of 250 pence per Darktrace share from April 30, 2021. Furthermore, the price is 44.3% higher than the volume-weighted average price for the three months leading up to the announcement. This acquisition implies an enterprise value of approximately $4.992 million, which is about 34 times Darktrace’s adjusted EBITDA for the twelve months ending December 31, 2023.

Strategic Enhancements and Future Growth

Darktrace is renowned for its pioneering use of self-learning artificial intelligence to neutralize cyber threats and automate responses to cyber incidents. The company’s technology, which eschews studying historical attacks in favor of a continuous learning approach, has established Darktrace as a leader in the AI-driven cybersecurity market. Thoma Bravo aims to leverage its extensive experience in software and operational expertise to further enhance Darktrace’s innovative capabilities and accelerate its growth into a global cybersecurity leader.

Andrew Almeida, a partner at Thoma Bravo, expressed enthusiasm about the acquisition, noting, “Darktrace is at the very cutting edge of cybersecurity technology. We are excited by the opportunity to work alongside Darktrace’s team to accelerate its development into a scaled, global leader.”

Legal and Financial Advisors

Kirkland & Ellis International LLP is acting as the legal adviser, and Goldman Sachs International along with Goldman Sachs & Co. LLC are serving as financial advisers to Thoma Bravo and Bidco in this significant transaction.

Darktrace’s Market Presence and Innovation

With a mission to free the world from cyber disruption, Darktrace employs over 2,300 people globally and protects more than 9,400 customers from advanced cyber threats. Headquartered in Cambridge, UK, Darktrace has offices in 24 countries, reflecting its broad international reach and influence in the cybersecurity industry.

The acquisition of Darktrace by Thoma Bravo is poised to significantly impact the cybersecurity landscape, enhancing Darktrace’s ability to innovate and expand its global reach. This move underscores Thoma Bravo’s commitment to investing in leading technology firms and marks a significant milestone in the cybersecurity sector.