Barracuda Networks, a main supplier of cloud-based security and information data protection solutions, reported its consent to be procured by driving private equity venture firm Thoma Bravo, LLC. The price was $1.6 billion.
“We believe the proposed transaction offers an opportunity for us to accelerate our growth with our industry-leading security platform that’s purpose-built for highly distributed, diverse cloud and hybrid environments. We will continue Barracuda’s tradition of delivering easy-to-use, full-featured solutions that can be deployed in the way that makes sense for our customers,” said BJ Jenkins, CEO of Barracuda. “Thoma Bravo has an excellent history of investing in growing security businesses, and this transaction speaks to the value and strength of Barracuda’s security platform, which helps customers protect and manage their networks, applications, and data. I expect that our employees, customers, and partners will benefit from this partnership.”
Barracuda investors will get $27.55 cash for each share of Barracuda stock they hold. This cost surpasses Barracuda’s 52-week high and speaks to a premium of 22.5 percent to the Company’s 10-day normal stock cost before Nov. 27, 2017, of $22.49. Barracuda’s Board of Directors consistently endorsed the deal, and hope it will boost investor confidence. Barracuda will work as a secretly held organization with a continued concentration on email security and administration, network and application security, and data protection arrangements that can be conveyed in cloud and hybrid environments.
“Barracuda is a proven industry leader, consistently bringing powerful, comprehensive solutions to customers in an increasingly prevalent, hostile, and complex threat environment,” said Seth Boro, a Managing Partner at Thoma Bravo. “We believe that Barracuda is at the forefront of innovation in several highly strategic areas of the cybersecurity market and are excited to be the company’s partner in the next phase of its growth.”
The proposed exchange is set to close before Barracuda’s monetary year end of February 28, 2018, and is subject to approval by Barracuda’s investors and administrative specialists, as well as the fulfillment of other standard closing conditions. Morgan Stanley is filling in as monetary counsellor to Barracuda, and Wilson Sonsini Goodrich and Rosati, Professional Corporation, is filling in as its lawful consultants. Financing for the exchange was done by Goldman Sachs, Credit Suisse, and UBS Investment Bank. The three financiers are also filling in as budgetary consultants to Thoma Bravo, and Kirkland and Ellis LLP are filling in as its lawful guidance.