US non-public fairness group Thoma Bravo is shopping for cyber safety firm SailPoint Applied sciences for $6.9bn, the most recent in a flurry of offers that indicators the leveraged buyout market is roaring again to life after a pause amid rising volatility and the conflict in Ukraine.
Thoma Bravo, which manages greater than $100bn in belongings, can pay $65.25 a share for SailPoint, two individuals with direct data of the main points instructed the Monetary Instances. The deal is anticipated to be introduced in a while Monday morning.
Texas-based SailPoint is utilized by companies to present staff safe entry to distant working software program and to guard cloud computing infrastructure from hackers.
The acquisition worth is a 31.5 per cent premium to SailPoint’s closing share worth on Friday and is the second time Thoma Bravo is investing. The group first purchased into SailPoint in 2014 and listed it on the New York Inventory Change three years later. It exited its holding by the tip of 2018, filings present.
Monday’s takeover highlights the elevated curiosity in acquisitions amongst non-public fairness consumers, notably within the software program sector, which offered off sharply at first of the 12 months.
Thoma Bravo and SailPoint declined to remark.
In March, Thoma Bravo agreed the $10.7bn takeover of enterprise software program firm Anaplan, the primary massive takeover after Russia invaded Ukraine in late February.
Elliott Administration has additionally led two massive non-public equity-backed offers this 12 months, taking software program firm Citrix non-public alongside Vista Fairness Companions for $16.5bn in January, and shopping for television ratings company Nielsen for $16bn with Canadian group Brookfield late final month.
Personal fairness teams within the US have been capable of increase billions in conventional financial institution financing, or from non-public lenders, regardless of rising geopolitical dangers, inflation and the prospect of upper rates of interest.
A consortium led by Introduction Worldwide and Permira Advisers was capable of shut the $14bn buyout of cyber safety firm McAfee in early March, elevating billions from financial institution lenders as markets fell sharply within the days after Russia invaded Ukraine.
For its takeover of Anaplan, Thoma Bravo bypassed financial institution lenders and as an alternative raised financing from a bunch of personal lenders led by Owl Rock, Blackstone, Apollo International and Golub Capital.
The individuals with data of the transaction mentioned SailPoint’s financing may also come from non-public lenders, together with some that financed the Anaplan takeover.
Personal fairness teams had their strongest ever begin to the 12 months within the first quarter, deploying huge money piles collected throughout the pandemic. There have been $288bn of personal equity-backed offers, a 17 per cent rise in contrast with the primary three months of 2021, in response to Refinitiv knowledge.
Bankers and lenders have additionally instructed the FT they’ve seen a pointy rise in non-public fairness deal exercise in current weeks.
Nevertheless, the marketplace for non-public fairness buyouts comes as the general deal market slowed sharply this year. Simply over $1tn of offers had been struck within the first quarter, 23 per cent decrease than in the identical interval final 12 months.