Thoma Bravo, a private equity firm, has announced its acquisition of Canada-based cybersecurity company, Magnet Forensics Inc. for an estimated $1.8 billion (US$1.3 billion). This move adds another cybersecurity asset to the private equity firm’s portfolio.
Magnet Forensics is a digital investigation software
company that provides its services to a diverse range of customers, including
law enforcement, businesses, the military and more. The company was founded by
former police officer, Jed Saliba, who identified the need for better
cybercrime-fighting tools and launched the company with Adam Belsher around
2010. Retired chairman and co-CEO of BlackBerry, Jim Balsillie, is a backer and
director of Magnet Forensics, and will remain on the board of the merged
company.
The acquisition will see Magnet Forensics merge with
Grayshift LLC, which was acquired by Thoma Bravo last year. The combination of
Grayshift’s mobile forensics capabilities and Magnet’s digital investigation
software suite will create a comprehensive digital forensics offering.
Thoma Bravo is an active investor in the software space
and this marks its first take-private transaction in Canada. The firm also
invested in Canadian company, Circle Cardiovascular Imaging Inc. last year.
Morgan Stanley and CIBC worked with Magnet Forensics’ special committee for the
acquisition.
Shares of Magnet Forensics rose 14% to $43.65 following
the announcement, giving the company a market value of about $1.8 billion. Most
investors will receive $44.25 for their shares, while rolling shareholders, including
some board members, will receive $39.00 for each subordinate and multiple
voting share they hold.
The acquisition of Magnet Forensics by Thoma Bravo
showcases the increasing demand for innovative and effective cybersecurity
solutions and the growing importance of digital investigations in today's
world.
Thoma Bravo, a private equity firm, has agreed to acquire
Canada's Magnet Forensics Inc. for approximately $1.8 billion (US$1.3 billion).
This acquisition brings another cybersecurity asset into the company's
portfolio, further strengthening its presence in the industry. Magnet
Forensics, a digital investigation software provider, will merge with Grayshift
LLC, another company acquired by Thoma Bravo last year. This move will bring
together Grayshift's mobile forensics capabilities with Magnet's digital
investigation software suite to provide a comprehensive digital forensics
solution. The acquisition marks Thoma Bravo's first take-private transaction in
Canada and further solidifies the company's position as one of the busiest
investors in the software space.
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