Proofpoint stock soars on agreement to be acquired by Thoma Bravo in $12.3B deal

Apr. 26, 2021 8:13 AM ETProofpoint, Inc. (PFPT)PFPTBy: Brandy Betz, SA News Editor
  • Proofpoint (NASDAQ:PFPT) has entered into a definitive agreement to be acquired by tech-focused PE firm Thoma Bravo for $176 per share in cash, a 34% premium to Friday's closing price.
  • The transaction values Proofpoint at approximately $12.3B.
  • After the deal closes, Proofpoint will become a privately-held company. The deal has a 45-day go-shop period expiring on June 9 that allows Proofpoint to consider other offers. If no superior offer is selected, the Thoma Bravo deal is expected to close during the third quarter.
  • “Today’s announcement is a testament to the strength of Proofpoint’s people-centric approach to cybersecurity and compliance and underscores our important role preventing, defending and responding to today’s threats,” says Proofpoint CEO Gary Steele. “We have made tremendous strides in expanding the sophistication and scale of our offerings, and in 2020 we generated more than $1 billion in annual revenue – making Proofpoint the first SaaS-based cybersecurity and compliance company to reach that milestone. We believe that as a private company, we can be even more agile with greater flexibility to continue investing in innovation, building on our leadership position and staying ahead of threat actors. Thoma Bravo is an experienced software investor, providing capital and strategic support to technology organizations, and our partnership will accelerate Proofpoint’s growth and scale at an even faster pace. This is an exciting new chapter for Proofpoint that would not have been possible without our employees’ hard work and commitment to our customers, partners and each other.”
  • Proofpoint shares were up up 0.9% pre-market to $132.97 before trading was halted ahead of the news. Update: Shares are up 32% as of 9 AM.
  • Proofpoint also reports its first-quarter results with revenue up 15% Y/Y to $287.8M, $276.7M in billings (+16%), and non-GAAP EPS of $0.49.

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