SailPoint Stock Soars As Thoma Bravo To Buy Security Star For $6.9B

Thoma Bravo is spending $6.9 billion on SailPoint with plans to take the idendity security company private in the second half of 2022.


Fresh off its blockbuster $12.3 billion acquisition of Proofpoint, private equity giant Thoma Bravo is looking to acquire identity security company SailPoint for $6.9 billion with plans to immediately take it private.

SailPoint’s stock is trading up 30 percent in pre-market trading Monday at $64.45 per share.

Thoma Bravo has already spent tens of billions of dollars over the past 12 months to acquire 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. In addition, Thoma Bravo is expected to acquire enterprise cloud software company Anaplan for $10.7 billion in the coming months.

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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 looking to capitalize on the growing demand for identity security offerings.

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“SailPoint is the clear leader in providing trusted identity security to the most well-respected global brands,” said Andrew Almeida, a partner at Thoma Bravo, in a statement. “As digital transformation becomes imperative for enterprises of all sizes to remain competitive, SailPoint’s innovative products provide the foundation for a robust security infrastructure that keeps employees and sensitive information safe. 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 core to businesses’ growth, success and security transformation.

The Austin, Texas-based company automates the management and control of access, delivering 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 seamlessly integrates with existing systems and workflows, providing a singular view into all identities and their access.

How Thoma Bravo Will Boost SailPoint

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

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

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

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

Thoma Bravo’s operational and financial resources combined with SailPoint’s focus on driving consistent innovation to deliver sustained customer success will set SailPoint on a path for sustained long-term growth, the company said.

Terms Of The Acquisition

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

When the deal is complete, SailPoint will become a privately held company with the flexibility and resources to continue providing identity security offerings around the world.