Chicago based Private Equity and Growth Capital firm Thoma Bravo has agreed to buy Barracuda Networks for $1.16 Billion after the later ‘Goes Private’. And the deal is said to take place in January next year and is expected to be wrapped by the end of February 2018.
Thoma Bravo will pay all cash for the conclusion of the deal and all shareholders of Barracuda Networks are expected to receive $27.55 for each share, which represents 17 percent premium from its last closing price.
As Barracuda specializes in cloud-enabled security solutions, Thoma Bravo believes that the new purchase will help it accelerate its growth the field of cybersecurity.
In past couple of years, Thoma Bravo has made a number of investments in the field of Cybersecurity which includes the purchase of a minor stake in McAfee and complete buyouts of Imprivata and Continuum.
Note 1- As Barracuda Networks is a public company, it will first go private and then will create a health standing for acquisition in order to reward its shareholders and CEOs with significant financial gains. Once a company goes private, Barracuda shareholders will no longer be eligible to sell their stocks in the open market and will have to oblige by the rules of Thoma Bravo.
Note 2- The deal is subjected to the approval by Barracuda Shareholders, Regulators and other conventional closing conditions put forward by United States SEC.
Note 3- Barracuda Networks provides storage, networking and security products based on network appliances and cloud services. The company offers products related to email, web surfing, web hackers and instant messaging threats such as spam, spyware, trojan, and Viruses.
Note 4-Thoma Bravo is currently managing private equity funds worth $17 billion in equity commitments. The firm is a successor to Golder Thoma & Co which was established in 1980 by Stanley Golder and Carl Thoma. The firm is known for its consolidation or buy and build investment strategies and focuses on companies offering application and infrastructure software along with technology-enabled business service sectors.