Proofpoint Soars As Thoma Bravo Comes Shopping in $12.3 Billion Deal

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Proofpoint Soars As Thoma Bravo Comes Shopping in $12.3 Billion Deal
Credit: © Reuters.

By Dhirendra Tripathi – Private equity firm Thoma Bravo agreed to buy Proofpoint (NASDAQ: PFPT ) in an all-cash transaction that values the software security group at $12.3 billion. Proofpoint rose more than 31%.

Thoma Bravo agreed to pay $176 share for Proofpoint, a 34% premium on the company's Friday close.

Wedbush analyst Dan Ives called it a “fair but attractive valuation” in his note.

“This was a smart move for Proofpoint to take this very attractive offer and premium as the investment community continued to undervalue this core asset in the market and thus PFPT finally hit the bid,” Ives wrote, adding that he expects a “massive M&A spree in the software and cyber security space” over 12 to 18 months.

A post-pandemic world has created new opportunities for firms proving cyber security solutions.

According to a filing by cyber security solutions provider Check Point Software (NASDAQ: CHKP ), the pandemic has thrown up new cyber security threats – first as organizations shifted to work-from-home and then as vaccinations rolled out – both situations exploited by hackers to steal data.

Check Point said researchers had found fake vaccination certificates and negative COVID-19 tests being offered on the Darknet, in addition to a sharp increase in the number of advertisements selling alleged coronavirus vaccines.


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