Sailpoint Technologies spikes 30% following agreement with Thoma Bravo

SailPoint Technologies Holdings Inc. (NYSE: SAIL)  is up after announcing a definitive agreement under which software investment company Thoma Bravo will acquire it in an all-cash transaction valuing SallPoint at around $6.9 billion. Shareholders of SailPoint will get $65.25 per share in cash if the Agreement’s terms are met, representing a 48% premium over the company’s 90-day volume-weighted average price (VWAP).

SailPoint to be a privately owned firm

The enterprise identity security firm will become a privately owned firm with the potential and capability to keep offering sector-leading identity security services to contemporary businesses globally once the deal is completed. SailPoint will also gain from Thoma Bravo’s operational capabilities, financing assistance, and extensive software experience.

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Businesses have understood that to support business development and performance, they must begin with identities as the cornerstone for secure enterprise transformation. SailPoint has seen quick growth and sees a huge opportunity ahead for it to maintain its position as the leading brand in the identity security sector.

The transaction delivers considerable cash value for SailPoint and its shareholders and optimizes value for its stock. SailPoint CEO and Founder Mark McClain commented:

The transaction will also allow us to pursue our long-term growth trajectory with greater flexibility and effectiveness to support our customers, expand our markets, and accelerate innovation in identity security with the backing of a strong financial partner with deep sector expertise. 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 better positioned to leverage opportunities

SailPoint is well placed to take advantage of modern businesses’ vast and growing need for powerful identity security products that protect their operations and lower risk. Thoma Bravo Managing Partner Seth Boro said:

Their market-leading identity security platform provides the autonomous and intelligent approach that the market requires today, especially among larger enterprises and as hybrid working becomes more common. We look forward to partnering with Mark and his talented team to drive SailPoint’s next chapter of growth.

SailPoint’s revolutionary technologies offer the framework for a solid security architecture that keeps personnel and critical information secure as digitalization becomes increasingly important for businesses of all sizes to stay competitive.