The tech mergers and acquisitions (M&A) market appears to be back in full force after two huge deals were unveiled for major cybersecurity companies by huge private equity firms.
The first, and larger of the two deals, came from US PE giant Thoma Bravo which bought SailPoint, which offers companies tools for employees to access secure remote work tools.
The deal, which privatizes SailPoint, values the company at $6.9 billion, a premium to SailPoint’s closing price. The Texas-based company saw its shares soar after the deal was reported by the FinancialTimes.
Offers, offers, offers
The second deal saw PE giant KKR buy Barracuda Networks, this time from Thoma Bravo in a deal valuing Barracuda at around $4 billion.
Barracuda offers SaaS tools to help businesses manage their cybersecurity needs, an increasingly important thing to do in the modern IT landscape.
Both of these mergers and acquisitions are huge, but that wasn’t even all the activity in the space this week.
Earlier this week, Datto – which offers cloud backup tools for small and medium-sized businesses – was acquired by Kaseya for $6.2 billion in cash, funded by Insight Partners and other equity firms. investment.
And earlier in March, Thoma Bravo agreed to acquire Anaplan, which makes cloud-based business planning software, for a staggering $10.7 billion.
Television ratings firm Nielsen was also recently acquired by private equity firms for about $16 billion and software company Citrix was taken private by Elliott Management for $16.5 billion.
A crazy world
All of these deals are pretty extraordinary and largely come down to the fact that private equity firms have raised huge amounts of money and tech company valuations have fallen post-pandemic.
Thoma Bravo, for example, raised $35 billion for buyouts at the end of 2021, money that is currently being deployed to good effect.