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.