Thoma Bravo bids $5.6bn for Sophos

US-based private equity company Thoma Bravo has placed a US$3.82 billion ($5.63 billion) bid for UK-based security company Sophos.

The board of Sophos has unanimously agreed to recommend the proposed US$7.40 per share acquisition.

The purchase price represents a roughly 37% premium on the company’s closing price of US$5.35. Pending shareholder and regulatory approval, the deal is expected to close in the first quarter of 2020.

“Today marks an exciting milestone in the ongoing journey of Sophos,” Sophos CEO Kris Hagerma said.

“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.”

Thoma Bravo Managing Partner Seth Boro said the company believes the acquisition represents an attractive opportunity to increase its presence in the large and growing cybersecurity market.

“Sophos has a market-leading product portfolio and we believe that, by applying Thoma Bravo’s expertise, operational framework and experience, we can support the business and accelerate its evolution and growth,” he said.

San Francisco-based Thoma Bravo is a private equity company with investments in over 200 software, security and IT companies.

The company is already an investor in several large security companies, including McAfee, SolarWinds and Imperva.

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