Mergers and Acquisitions

Thoma Bravo Acquires Darktrace

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Private equity firm Thoma Bravo has added another cybersecurity company to its portfolio with the acquisition of Darktrace for $5.3 billion cash.

Darktrace, founded in 2013 with the backing of entrepreneur Mike Lynch (who is currently being tried in the U.S. on fraud charges stemming from his previous company), uses artificial intelligence to detect attacks and vulnerabilities inside IT networks, according to Reuters. Lynch, who no longer has any role at Darktrace, owns 3.9% of company shares, while his wife owns 2.9%, according to London Stock Exchange data.

Thoma Bravo previously approached Darktrace in 2022, but those talks did not result in an offer. Reuters said Darktrace's board rejected proposed offers from Thoma Bravo before agreeing to the deal, according to a statement from the companies.

In addition to commitments from Darktrace's board, Thoma Bravo said in a statement that it had the backing of a KKR fund and Summit Partners. Together, they represent 14.4% of the shares, Reuters said. The deal will require support from 75% of holders of Darktrace's shares.

Thoma Bravo, which bought British software firm Sophos for $3.9 billion in 2020, said it intended to keep Darktrace headquartered in Britain.

Thoma Bravo was advised by Goldman Sachs and Darktrace was advised by Jefferies and Qatalyst Partners.