Private equity firm Thoma Bravo plans today to buy UK-based cyber-security giant Sophos for $7.40 per share, for a total value of $3.9 billion, both companies announced today. Overview: On 14 Oct 2019, Thoma Bravo offered to acquire Sophos for $7.40 per share in cash, a 37% premium on closing price on 11 Oct 2019. This represents an enterprise value of $3.9bn. Major shareholders including the private equity group Apax Partners and the co-founders (Peter Lammer and Jan Hruska), who collectively own more than a quarter of the company, have accepted the deal. Sophos, a global leader in next-generation cybersecurity, today announced the completion of its acquisition by Thoma Bravo, a leading private equity firm focused on the software. Private equity giant Thoma Bravo has offered to purchase Sophos for $3.82 billion less than four and a half years after the SMB platform security stalwart went public. On October 14, 2019, Sophos announced that Thoma Bravo, a US-based private equity firm, made an offer to acquire Sophos for $7.40 USD per share, representing an enterprise value of approximately $3.9 billion. The board of directors of Sophos stated their intention to unanimously recommend the offer to the company’s shareholders.

by Joe Panettieri • Oct 14, 2019

Sophos has agreed to be acquired by Thoma Bravo, the cybersecurity and private equity firms confirmed today.

Sophos is an MSP-friendly provider of cybersecurity software and tools that protect endpoint, network and cloud services, among other areas. While some security companies are selling their latest wares directly to end-customers, Sophos has maintained a channel-led strategy — even for the company’s new managed detection and response (MDR) service.

Still, the European security firm has struggled with inconsistent revenue growth over the past year or two. Amid those revenue challenges, Thoma Bravo has bid $3.9 billion for the company — which represents a 37 percent premium for the security company.

Thoma Bravo owns numerous cybersecurity and MSP-friendly companies. The private equity firm also has ownership stakes in Barracuda Networks, ConnectWise, Continuum, SolarWinds, LogRhythm, McAfee and Veracode, among others.

In a prepared statement, Sophos CEO Kris Hagerman said:

“Today marks an exciting milestone in the ongoing journey of Sophos. Sophos is actively driving the transition in next-generation cybersecurity solutions, leveraging advanced capabilities in cloud, machine learning, APIs, automation, managed threat response, and more. We continue to execute a highly-effective and differentiated strategy, and we see this offer as a compelling validation of Sophos, its position in the industry and its progress.”

The Sophos board of directors has stated its intention to unanimously recommend the offer to shareholders.

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