Apr 26, 2021 - Economy

Thoma Bravo to buy Silicon Valley software maker Proofpoint for $12.3 billion

A computer and a mouse.

Illustration: Aïda Amer/Axios

Thoma Bravo agreed to buy Silicon Valley-based cybersecurity and compliance software maker Proofpoint (Nasdaq: PFPT) for $12.3 billion.

Why it matters: This would be the largest-ever private equity deal for a software company. It's also the latest indication that the return of mega-buyouts doesn't necessarily mean the return of club deals, as Thoma Bravo is going it alone.

Details: Thoma Bravo will pay $176 per share, which represents a 34% premium to Friday's closing price. The deal includes a 45-day go-shop provision, and is expected to close in the third quarter. Proofpoint today reported a $43 million net loss on $288 million of revenue for Q1 2021.

The bottom line: "The company is probably best known for email-based security tools, which remains a very significant business, especially when you consider how so many breaches start with what appear to be innocent emails but are in reality malicious intent vectors, hiding bad actors, dodgy links and more for malicious hackers to worm their way into bigger networks via unassuming individuals.” — TechCrunch

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