Darktrace Soars 17% Following $5.32 Billion Private Equity Deal with Thoma Bravo

Darktrace, the British cybersecurity firm has agreed to be sold to U.S. private equity firm Thoma Bravo for $5.315 million in cash.

This news caused Darktrace’s shares to go up by 17% at 10:26 a.m. London time. Under the deal, investors will get $7.75 in cash for each share they own, as recommended by Darktrace’s board.

Moving into private ownership marks a significant setback for Darktrace’s presence on the London Stock Exchange, where it went public in 2021.

Darktrace was seen as an exciting addition to a market mostly dominated by traditional industries like mining and oil, which are less appealing to tech companies.

Darktrace sold to Thoma Bravo
Thoma Bravo sees this acquisition as an opportunity to expand its presence in the cybersecurity market.

Darktrace believes it’s undervalued in the U.K., which is why it’s opting for this sale. The company thinks its achievements aren’t reflected in its stock price and that it’s trading at a much lower value compared to similar companies worldwide.

Founded in 2013 and headquartered in Cambridge, Darktrace specializes in using artificial intelligence to protect large companies and events from cyber attacks. It has around 2,300 employees worldwide.

Investors receive $7.75 per share, a private move seen as a major blow to London. (Credits: iStock)

Thoma Bravo sees this acquisition as an opportunity to expand its presence in the cybersecurity market. The deal offers a 44.3% premium over Darktrace’s average share price in the three months leading up to April 25.

Darktrace had previously turned down offers from Thoma Bravo, believing they didn’t accurately value the company. Since going public, Darktrace has faced challenges, including a short-selling attack in 2023 and legal issues involving one of its co-founders, Mike Lynch, who is facing fraud charges in the U.S.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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