Adrian Johnson
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TLDR:
- Darktrace, a cybersecurity and AI company, has agreed to a $5.3bn sale to US private equity firm Thoma Bravo.
- Thoma Bravo’s cash offer values Darktrace at $7.75 per share, signaling a 44% increase from its average share price over the past three months.
Article Summary:
The Cambridge-based cybersecurity and AI company, Darktrace, has agreed to be acquired by US private equity business Thoma Bravo for $5.3bn. The deal, which values Darktrace at $7.75 per share, represents a 44% premium over its average share price. The company’s board expressed that their technology had been undervalued on the London Stock Exchange, signaling a trend of UK tech companies being acquired by US entities for higher valuations. Despite its strong cybersecurity technology that uses AI to detect threats, Darktrace’s valuation had lagged behind its peers. The sale to Thoma Bravo provides shareholders with certainty about the value of their shares and the opportunity for the company to grow in a more stable and private setting.
Darktrace’s co-founding investor, Mike Lynch, who is on trial for fraud and conspiracy in the US, has no formal role in the company but owns a stake that will be worth nearly £300m from the sale. The sale could potentially help fund Lynch’s legal battles. Despite Lynch’s legal troubles, Darktrace’s CEO, Poppy Gustafsson, emphasized the company’s distance from the investor and its focus on advancing its AI cybersecurity technology to address growing cyber threats globally.
Thoma Bravo, a major software and cybersecurity investor based in Chicago, sees Darktrace’s technology as cutting edge in the cybersecurity space and aims to leverage its AI capabilities. The acquisition of Darktrace by Thoma Bravo highlights the increasing interest and investment in AI-powered cybersecurity solutions in response to complex cyber threats. Overall, the sale of Darktrace to Thoma Bravo signifies a strategic move for the company to further enhance its cyber defense technology and grow in a more conducive environment.
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