10 Things To Know About The $5.8B Permira-Mimecast Deal
Here’s a look at how Mimecast can leverage Permira’s deep pockets to its advantage, the possibility of another buyer coming in with a superior bid, and why email security vendors have made such appealing acquisition targets.
1. Purchase Price Came In At Low End Of Analyst Expectations
The Wall Street Journal reported in late October that Mimecast was probing a possible sale, with email security rival Proofpoint expected to emerge as a potential buyer after getting acquired themselves this year. The company had been working with bankers to consider options including a sale or taking a big investment, people familiar with the matter told The Wall Street Journal in October.
Mimecast may be worth between $80 per share and $118 per share in a sale, Stephens analyst Brian Colley said in October, meaning the proposed Permira deal came in at the low end of expectations. All three publicly traded pureplay email security vendors have signed or completed acquisition agreements this year.
The proposed acquisition comes four months after Thoma Bravo bought Proofpoint for $12.3 billion in the second-largest cybersecurity deal of all time. Then last month, OpenText agreed to buy Zix for $860 million to create a powerhouse SMB platform by integrating the company’s email security technology with data protection, threat management, and compliance offerings from Carbonite and Webroot.