Thoma Bravo, through its arm Morpheus Purchaser, will acquire Magnet Forensics, a Canadian digital investigation software company, for an aggregate total equity value of around CAD 1.8 billion ($1.34 billion).

The proposed acquisition is expected to help the American software investor create an advanced end-to-end digital investigations platform for public safety agencies globally.

Founded in 2010, Magnet Forensics develops digital investigation software that acquires, analyzes, reports on, and manages evidence from digital sources, including computers, mobile devices, Internet of Things (IoT) devices and cloud services, used by over 4,000 enterprises and public safety organizations in more than 100 countries.

Post-closing, Thoma Bravo anticipates to integrate Magnet Forensics’ digital investigation suite and Grayshift’s mobile access and extraction capabilities to extract, process, examine, cooperate on and manage digital forensic evidence.

In July 2022, Thoma Bravo acquired majority control of Grayshift, a mobile device digital forensics provider specializing in lawful access and extraction.

Hudson Smith — Thoma Bravo partner said: “We look forward to bringing together the complementary capabilities of Magnet and Grayshift to create a leader in the digital forensics and cyber security space.

“Digital evidence is an increasingly critical aspect of investigations and the combined company will be well-positioned to further market expansion, accelerate innovation, and provide even greater solutions to its customers.

“We look forward to leveraging Thoma Bravo’s deep industry, operational and investment expertise to help the combined company capture the tremendous growth opportunities ahead.”

The Waterloo-based Magnet Forensics will be a privately held company following the closing of the transaction.

Adam Belsher — Magnet Forensics CEO said: “We believe the combination of Magnet and Grayshift will unlock tremendous value for our customers by further integrating and expanding our product suite which will result in more seamless workflows in the recovery and analysis of critical digital evidence to investigations and ultimately contribute to our shared mission of the pursuit of justice.”

The transaction is anticipated to complete by the second quarter of 2023, subject to regulatory approvals and other customary closing conditions.

  Adam Belsher, Canada, Grayshift, Hudson Smith, Magnet Forensics, Morpheus Purchaser, Thoma Bravo