UK Cybersecurity Company Sold to US Private Equity For $5.3 Billion Due To Being 'Undervalued' in LSEG

By Thea Felicity

Apr 26 2024, 09:45 AM EDT

SAINT PETERSBURG, RUSSIA - MAY 30: Alex Moiseev, Chief Business Officer (L) and Alina Topchy, Deputy Chief Business Officer are seen at Kaspersky Lab Global Partner Conference 2018: From Cybersecurity To Cyber Defense on May 30, 2018 in Saint Petersburg. In the beautiful setting of St. Petersburg, Kaspersky Lab holds its annual appointment to discuss the industry key topics, present the future of cyber threats and bring solutions on how to defend against them. This year agenda covers the need to transform cyber security into cyber defense, meaning a change of the traditional security approach to a more active resistance, because effective information security is a key business success factor in the digital world. Ian Gavan/Getty Images for Kaspersky Lab

Cambridge-based company known for its innovative AI-driven cybersecurity solutions, Darktrace has accepted a $5.3 billion acquisition offer from US private equity giant Thoma Bravo. According to The Guardian, the deal represents a 44% premium over Darktrace's average share price in the past three months.

Darktrace's decision to embrace Thoma Bravo's offer is a testament to its belief in its potential for growth and innovation. By transitioning to private ownership under Thoma Bravo, Darktrace is poised to thrive in a more stable environment, offering shareholders certainty about the value of their investments.

Thoma Bravo's cash offer values Darktrace at an impressive $7.75 per share, a substantial increase from its initial valuation of 250p during its London IPO in 2021.

Why Darktrace Found Solace in Thoma Bravo

Despite being lauded for its cutting-edge cybersecurity technology, which uses AI to counter threats within IT networks, Darktrace has faced challenges in aligning its valuation with industry peers.

Lingering concerns associated with Darktrace's co-founder, Mike Lynch, who is currently in a legal battle over allegations of fraud and conspiracy in the US, have also influenced market sentiment.

Nevertheless, Darktrace's current CEO, Poppy Gustafsson, expressed optimism about the acquisition. He underlined the company's continuous commitment to using artificial intelligence to address cybersecurity challenges globally. The $5.3 billion sale will help expand its product portfolio and venture into new markets.

Thoma Bravo is known for its software and cybersecurity investment expertise and views Darktrace as a pioneer in cybersecurity technology. The US private equity firm anticipates that Darktrace AI capabilities will greatly protect the US government and private organizations.