For many startups, transitioning from private to public entities is the ladder to success. For SailPoint, an Austin-based identity security firm, that is not the case. The company is set to move from public back to private once it is acquired by Thoma Bravo.
News of the acquisition was announced via a company release Monday morning in which it stated the deal is worth approximately $6.9 billion. The all-cash transaction is expected to close in the second half of the year.
SailPoint was founded in 2005 and has used machine learning to help companies provide safe and secure access to technology for their employees. Through its platform, SailPoint provides services such as risk and password management. It also uses AI to monitor an organization’s network and identify security issues.
Prior to going public in 2017, SailPoint had raised $26.1 million in venture capital, according to Crunchbase. When it went public, it raised $240 million with a share price of $12.
“SailPoint is ideally positioned to capitalize on the large and growing demand from modern enterprises for robust identity security solutions that secure their business and reduce risk,” Seth Boro, a managing partner at Thoma Bravo, said in a statement. “Their market-leading identity security platform provides the autonomous and intelligent approach that the market requires today, especially among larger enterprises and as hybrid working becomes more common. We look forward to partnering with [SailPoint CEO] Mark and his talented team to drive SailPoint’s next chapter of growth.”
With the acquisition, SailPoint will join one of the largest private equity firms. Toma Bravo has over $103 billion in asses and over 60 portfolio companies under its name.
Because SailPoint will transition from a public to a private company with the acquisition it will need to buy back its stocks. Per the acquisition agreement, SailPoint is set to offer shareholders $65.25 per share.
“This transaction delivers significant immediate cash value to our stockholders and maximizes the value of their shares. The transaction will also allow us to pursue our long-term growth trajectory with greater flexibility and effectiveness to support our customers, expand our markets and accelerate innovation in identity security with the backing of a strong financial partner with deep sector expertise. Thoma Bravo’s belief in our vision for identity security aligns strongly with our desire to accelerate and extend our leadership for years to come,” SailPoint CEO Mark McClain said in a statement.
