Under the terms of the agreement, shareholders of the publicly-listed Texas-based will be paid $65.25 per share by Thoma Bravo; by going private, SailPoint is expected to get the flexibility and resources to continue offering identity security solutions


Thoma Bravo to acquire identity security provider SailPoint. (Credit: Biljana Jovanovic from Pixabay)

SailPoint Technologies, a US-based enterprise identity security provider, has agreed to be acquired by software investment firm Thoma Bravo in an all-cash deal worth around $6.9bn.

As per the terms of the agreement, shareholders of the Texas-based publicly-listed firm will be paid $65.25 per share by Thoma Bravo.

Following the closing of the deal, SailPoint will become a privately held company. It is expected to get the flexibility and resources to continue offering identity security solutions to modern enterprises across various parts of the world.

Furthermore, the company is anticipated to benefit from Thoma Bravo’s operating capabilities, capital support, as well as deep software expertise.

SailPoint CEO and founder Mark McClain said: “This transaction delivers significant immediate cash value to our stockholders and maximises the value of their shares.

“The transaction will also allow us to pursue our long-term growth trajectory with greater flexibility and effectiveness to support our customers, expand our markets, and accelerate innovation in identity security with the backing of a strong financial partner with deep sector expertise.”

SailPoint by tapping the power of artificial intelligence (AI) and machine learning, is said to bring in automation for the management and control of access. This ensures that only the necessary access is available to the right identities and technology resources at the right time.

The company has built an identity platform that integrates with existing systems and workflows to offer the singular view into all identities as well as their access.

For the full year 2021, the company reported total revenue of $439m, an increase of 20% year-over-year.

Thoma Bravo managing partner Seth Boro said: “SailPoint is ideally positioned to capitalise on the large and growing demand from modern enterprises for robust identity security solutions that secure their business and reduce risk.

“Their market-leading identity security platform provides the autonomous and intelligent approach that the market requires today, especially among larger enterprises and as hybrid working becomes more common.”

The deal, which is subject to approval by SailPoint’s shareholders, regulatory approvals, and other customary closing conditions, is expected to close in the latter half of this year.

SailPoint’s board has unanimously recommended the company’s stockholders vote in favour of the deal.