Key points:
- SAIL shares jumped 30% following $6.12B acquisition from Thoma Bravo
- Remote working trends and Russian cyber attacks have increased focus on cybersecurity
- The acquisition builds on Thoma Bravo's strong security-focused portfolio
Cybersecurity is quickly shaping up to be one of the hottest sectors within tech investment, ushered along further by growing concerns regarding the conflict in Ukraine and the rise in Russian cyber attacks. The security market might well prove to be one of the fastest growing niches in coming years, as digitalisation consistently governs the way industry evolves.Â
Today, private equity firm Thoma Bravo is heating up their stake in the security software market with a $6.12B acquisition of SailPoint Technologies (NYSE: SAIL); sending SAIL shares soaring nearly 30% in early Monday trading.Â
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Pandemic-fueled remote working shifted the degrees to which we interact with technology, business had to be re-shaped for a digital environment and hence cybersecurity followed suit. Bolstered by cyber attacks in the Russia-Ukraine conflict, the market is attracting some serious attention.Â
Following the acquisition, Thoma Bravo will strengthen its position in the security-focused space; building on its existing investment portfolio of companies like Barracuda Networks, Blue Coat Proofpoint, Sonicwall and Sophos.Â
Thoma Bravo manages over $100B in assets, and was already the majority stakeholder in SailPoint prior to its IPO in 2017 before exiting in 2018.
SailPoint shareholders will receive $65.25 per share in cash, equalling a premium of 31.6% as of Friday’s closing price. The total value of the deal, including debt, is estimated at around $6.9B. The deal is expected to close in the second half of 2022, should everything run accordingly. Investors should pay close attention to the security software market; a beacon for undervalued high-growth plays.
