SailPoint stock soars as Thoma Bravo buys Security Star for $6.9 billion

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Fresh off of its successful $12.3 billion acquisition of Proofpoint, private equity giant Thoma Bravo is seeking to acquire identity security firm SailPoint for $6.9 billion with the intention of taking it private immediately.

SailPoint shares are trading up 30% in pre-market Monday at $64.45 per share.

Thoma Bravo has already spent tens of billions of dollars in the past 12 months acquiring cybersecurity and software companies, including Bottomline Technologies for $2.6 billion in December, Medaillia for $6.4 billion in July and Proofpoint in April 2021. Additionally, Thoma Bravo is expected to acquire enterprise cloud software company Anaplan for $10.7 billion in the coming months.

The private equity firm’s acquisition of SailPoint, which is expected to close in the second half of 2022, is a strategic security move that sees Thomo Bravo seek to capitalize on the growing demand for identity security offerings.

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“SailPoint is the undisputed leader in providing trusted identity security to the world’s most respected brands,” Thoma Bravo partner Andrew Almeida said in a statement. “As digital transformation becomes imperative for businesses of all sizes to remain competitive, SailPoint’s innovative products provide the foundation for a robust security infrastructure that protects employees and sensitive information. We are excited to leverage Thoma Bravo’s deep software and operational capabilities to support SailPoint’s mission to be the de facto identity security platform player of choice.

SailPoint was co-founded by CEO Mark McClain, who says identity security is at the heart of enterprise security growth, success and transformation.

The Austin, Texas-based company automates access management and control, providing only the required access to the right identities and technology resources at the right time by leveraging artificial intelligence and machine learning. SailPoint’s Identity Platform integrates seamlessly with existing systems and workflows, providing a single view of all identities and their access.

How Thoma Bravo will boost SailPoint

Thoma Bravo will enable SailPoint to pursue a long-term growth trajectory with greater flexibility and efficiency to expand market reach, better support customers, and accelerate innovation in identity security with the support of the private equity firm, according to Thoma Bravo. Thoma Bravo has over $100 billion in assets under management.

Thoma Bravo will also provide “significant immediate cash value” to shareholders, SailPoint CEO McClain said.

“We have experienced rapid growth and see tremendous opportunity ahead of us to continue to set the pace in the identity security market as a category leader,” McClain said in a statement. “Thoma Bravo’s belief in our vision for identity security aligns strongly with our desire to accelerate and expand our leadership for years to come.”

SailPoint brings a long heritage in identity security and a deep commitment to driving innovation at a pace the IT cybersecurity market needs today, he said.

Thoma Bravo’s operational and financial resources, combined with SailPoint’s focus on driving constant innovation to ensure lasting success for its customers, will set SailPoint on the path to sustained long-term growth, said the society.

Vesting conditions

SailPoint shareholders will receive $65.25 per share in cash, representing a 48% premium to SailPoint’s 90-day volume-weighted average price.

Upon completion of the agreement, SailPoint will become a private company with the flexibility and resources to continue providing identity security offerings worldwide.

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