If you can’t beat them, buy them - US growth capital specialist to acquire Sophos Group
Sophos, a leading provider of cloud-enabled next-generation cybersecurity and a real Thames Valley tech success story, looks like it will become the first international acquisition by US private equity firm Thoma Bravo. The board of Abingdon-based Sophos intends to approve the offer, valued at $3.82 billion with a consideration of $7.40 in cash per share.
Recent drops in the pound alongside the ongoing evolution of the cybersecurity market have been catalysts for this buyout. Following completion of the deal, Sophos will no longer be a UK listed company. Unlike other businesses Thoma Bravo has acquired, Sophos will remain a standalone company to allow for continued expansion into its own markets. Thoma Bravo has confirmed that major restructuring and significant job losses at Sophos are unlikely.
This acquisition should bring opportunities for streamlining and increased profitability for both parties:
Sophos retains its identity and key talent and should gain investment to accelerate development in operational areas which perform highly such as its network security solutions.
With Sophos’ cybersecurity expertise now in-house, Thoma Bravo can focus its R&D spend on core products within the rest of its tech stable.
This deal reaffirms the need for tech firms to innovate on a continuous basis, whether to compete or as part of an exit strategy. It also shows that what drives acquisitions in tech is the ability of both parties involved to demonstrate mutual opportunities to improve responsiveness to market demands ahead of their rivals.
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