Darktrace Stock Soars 24 Percent After Thoma Bravo Takeover Talks

Thoma Bravo is looking to continue its cybersecurity acquisition run with the potential purchase of security AI-specialist Darktrace.


Shares of cybersecurity artificial intelligence specialist Darktrace are soaring after the company confirmed it’s in talks with private equity firm Thoma Bravo about a potential takeover.

The private equity giant has been on a multi-billion-dollar acquisition tear in the cybersecurity industry over the past few years. Thoma Bravo’s strategy consists of spending billions to buy security firms and taking the companies private.

Darktrace’s stock jumped 24 percent on Monday, starting the day at around $5.01 per share and standing at $6.20 per share following the conformation that Thoma Bravo could acquire the U.K.-based cybersecurity standout.

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“[We] are in the early stages of discussions with Thoma Bravo,” said Darktrace in a statement, adding that discussions with the private equity firm is for a cash offer.

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Thoma Bravo must unveil its official plan to purchase Darktrace by Sept. 12, but there is still no certainty of an acquisition, according to a statement by Darktrace.

Thoma Bravo Acquisition Charge

Thoma Bravo is on a cybersecurity acquisition charge with an M&A strategy through which the private equity firm buys a security company, typically for billions of dollars, in order to take it private.

The Darktrace news comes just weeks after Thoma Bravo unveiled its plans to also acquire cybersecurity firm Ping Identity for a deal valued at $2.8 billion. The private equity giant said it plans to take Ping private.

In April, the private-equity powerhouse announced it was purchasing publicly traded cybersecurity company, SailPoint, in a deal valued at $6.9 billion.

And in a security inductry blockbuster last year, Thoma Bravo acquired Proofpoint for a whopping $12.3 billion, quickly taking the cybersecurity firm private.

Darktrace Shares Jump

Darktrace initially hit the public market in July 2021, trading at $7.75 per share.

The company currently has a market cap of approximately $3.5 billion, with over 2,000 employees across the globe.

Darktrace aims to deliver complete AI-powered solutions to free the world of security disruptions. The company invests heavily in applying AI to proactive areas of cybersecurity, with its self-learning AI technology able to model the typical behavior of every user and device to understand a business from the inside out.

DakrTrace delivers the first-ever Cyber AI Loop, fueling a continuous end-to-end security capability that can autonomously spot and respond to novel in-progress threats within seconds, the company said.

The company’s Darktrace AI Research Centre houses mathematicians and IT experts who examine how AI can be applied to real-world problems to find new paths forward.

The company protects over 7,400 global customers from advanced cyber threats.

Darktrace’s Acquisition of Cybersprint

Earlier this year, Darktrace acquired attack surface management vendor Cybersprint for $54 million in a move to give customers insights that eliminate security blind spots and detect risks.

Netherlands-based Cybersprint boosted existing Darktrace products with external vulnerability data and accelerated Darktrace’s entry into new areas like proactive AI cybersecurity.

Cybersprint initially became a module in Darktrace’s Prevent suite this summer, with their technology also used to address use cases around M&A transactions, supply chain security and brand reputation.