In a deal that illustrates the heightened interest in the security software business, private equity firm Thoma Bravo will purchase SailPoint Technologies for US$6.1 billion (A$8.2 billion).
SailPoint specialises in identity and access management software that helps businesses limit the risk of sensitive data leaks by preventing unauthorised user access.
Thoma Bravo will strengthen its position in the security-focused industry by purchasing SailPoint, which it already owns stakes in Proofpoint, Barracuda Networks, and Sophos.
Due to a Covid-19-led move to remote working and an increase in cyber assaults, cyber security has become a hot industry for buyouts.
Datto, a security solutions business, was also taken private this week by investors led by Insight Partners in a US$6.2 billion deal.
According to sources, the investment might help SailPoint expedite its transformation to a software as a service (SaaS) model without the scrutiny of being a public business, as well as support prospective Thoma Bravo-backed transformative acquisitions.
“In our target market, we’re roughly 10% penetrated. In terms of what we add to our portfolio, we have a lot of room to expand “McClain explained.
