Thoma Bravo acquires SailPoint for $6.9 billion

Software investment company Thoma Bravo has announced plans to acquire digital identity management firm SailPoint for $6.9 billion (£5.3 billion).

The all-cash transaction, which is subject to approval from SailPoint stockholders, will see SailPoint become a privately held company. This will result in the company being taken off the public market less than five years after it raised $240 million with its New York Stock Exchange IPO debut.

However, Thoma Bravo stated that the identity management and cloud security provider will benefit from new operating capabilities, capital support, and deep software expertise.

SailPoint CEO Mark McClain, who founded the company in 2005, said that the acquisition “delivers significant immediate cash value to our stockholders and maximises the value of [SailPoint] shares”.

All SailPoint stockholders are expected to receive $65.25 (£50) per share in cash, representing a premium of 48% to SailPoint’s 90-day volume-weighted average price (VWAP).

“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,” said McClain, adding that SailPoint had “experienced rapid growth and see[s] a tremendous opportunity ahead of [it] to continue to set the pace in the identity security market as the category leader”.

Commenting on the news, Thoma Bravo managing partner Seth Boro described SailPoint as “ideally positioned to capitalise on the large and growing demand from modern enterprises for robust identity security solutions that secure their business and reduce risk”,

“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 Mark and his talented team to drive SailPoint’s next chapter of growth,” he added.

Headquartered in Austin, Texas, SailPoint employs an estimated 1,676 people across offices in the US, Australia, and Europe, including London and Amsterdam. The acquisition is expected to be finalised in the second half of 2022, with SailPoint retaining its Austin HQ. SailPoint board members and advisors will be allowed to actively initiate, solicit, and consider alternative acquisition proposals from third parties until 16 May 2022.

The news comes almost one year after Thoma Bravo announced plans to acquire cyber security and compliance company Proofpoint for $12.3 billion (£8.8 billion). The deal was finalised on 31 August 2021.