Private equity firm Thoma Bravo will acquire software security company Ping Identity Corporation in a $2.8 billion all-cash deal, taking it private, Ping announced in early August.
Thoma Bravo will pay $28.50 per share, which is 63% over Ping’s closing share price the day before the announcement, the company said.
Private equity firms have gone after tech companies in recent months, particularly those that have struggled to perform well in the public markets, raise money in later-stage rounds, and go public due to market conditions. Thoma Bravo has been involved in other enterprise IT deals, including the purchase of SailPoint for $6.9 billion and Anaplan for $10.7 billion.
Before going public prior to the pandemic, Ping was majority-owned by another PE firm, Vista Equity, which has retained 9.7% of its outstanding shares.
“Identity security and frictionless user experiences have become essential in the digital-first economy, and Ping Identity is better positioned than ever to capitalize on the growing demand from modern enterprises for robust security solutions,” Ping’s Chief Executive Officer Andre Durand said in a statement. “We are pleased to partner with Thoma Bravo, which has a strong track record of investing in high-growth cloud software security businesses and supporting companies with initiatives to turbocharge innovation and open new markets.”
With increasing incidence of breaches and cyberattacks, identity management is a key component of enterprise IT. Still, Ping has not been growing quickly enough and may have been unable to raise funding as an independent company, according to TechCrunch. The company reported that “unlevered free cash flow” was negative $8.4 million for the six months ending June 30, compared to $34.5 million a year prior.
“Ping Identity’s unique capabilities and strong position in enterprise identity security make it a great platform to deliver customer outcomes, expand into new use cases, and support digital transformations,” Thoma Bravo Managing Partner Seth Boro said in a statement.
The transaction is expected to close in the fourth quarter, pending regulatory and other approvals. Ping’s Board of Directors has unanimously approved the deal.