Following the closing of the deal, the Canadian digital investigation solutions developer will become a privately held company
Software investment firm Thoma Bravo has signed a definitive agreement with Canada-based digital investigation solutions developer Magnet Forensics to acquire the latter in a deal worth C$1.8bn ($1.34bn).
The agreement with Magnet Forensics has been executed by Morpheus Purchaser, a newly created entity controlled by Thoma Bravo.
As per the terms of the agreement, subordinate voting shareholders of the Waterloo-based publicly-listed firm will be paid C$44.25 ($33.15) per subordinate voting share in cash by Thoma Bravo.
The rolling shareholders of Magnet Forensics will receive C$39 ($29.21) for each subordinate voting share from the software investment firm.
Following the closing of the deal, the digital investigation solutions developer will become a privately held company.
Established in 2010, Magnet Forensics develops digital investigation software which gathers, examines, reports on, and manages evidence from digital sources, including mobile devices, computers, the Internet of Things (IoT) devices, and cloud services.
According to the company, its software is used by over 4,000 clients from the public and private sectors in more than 100 countries which helps investigators to protect assets, fight crime, and guard national security.
Upon closing of the deal, Thoma Bravo plans to integrate the firm with Grayshift, a mobile device digital forensics provider, in which the former acquired a majority stake in July 2022.
Magnet Forensics CEO Adam Belsher said: “We believe the combination of Magnet and Grayshift will unlock tremendous value for our customers by further integrating and expanding our product suite which will result in more seamless workflows in the recovery and analysis of critical digital evidence to investigations and ultimately contribute to our shared mission of the pursuit of justice.”
Through the combination of Magnet Forensics and Grayshift’s complementary offerings, Thoma Bravo expects to develop an end-to-end digital investigations platform to bolster public safety agencies worldwide.
Thoma Bravo partner Hudson Smith said: “We look forward to bringing together the complementary capabilities of Magnet and Grayshift to create a leader in the digital forensics and cyber security space.
“Digital evidence is an increasingly critical aspect of investigations and the combined company will be well-positioned to further market expansion, accelerate innovation, and provide even greater solutions to its customers.”
The transaction is anticipated to close by Q2 2023, subject to receipt of court and regulatory approvals and other customary conditions.