Private equity firm Permira has acquired email security company Mimecast for roughly $5.8 billion. The deal surfaces after rumors that Mimecast was up for sale surfaced in October 2021.
This is technology M&A deal number 759 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Still, the deal includes a 30-day “go-shop” period -- which expires on January 6, 2022. During the go-shop window, Mimecast will "actively initiate, solicit, encourage, and evaluate alternative acquisition proposals" -- which means additional bids for the email security company could emerge.
Mimecast Buyout: Will Thoma Bravo and Proofpoint Counter Permira?
Who else could potentially bid for Mimecast? One potential name is rival Proofpoint, which is owned by private equity firm Thoma Bravo. In terms of revenues, Proofpoint is roughly twice the size of Mimecast.
ChannelE2E has reached out to Proofpoint and Thoma Bravo to see if those companies are interested in a potential Mimecast acquisition. We will update this article if we have new details to share.
If the Mimecast-Permira deal moves forward, the buyout is expected to close in the first half of 2022, the companies indicated. Mimecast would become a privately held company at that time.
The $5.8 billion purchase price represents a premium of approximately 16% to Mimecast’s closing stock price on October 27, 2021 -- the last full trading day prior to a Wall Street Journal article disclosing a potential Mimecast company sale.
Mimecast Partner Program, Business Challenges
The Mimecast partner program spans resellers and MSPs. The company named Jonathan Corini as senior vice president of global channel sales in October 2020.
Mimecast has 1,700 employees and 40,600 customers, according to the email security company’s website.
Mimecast’s business has experienced some turbulence over the past year. The company confirmed targeted layoffs in February 2021, and also disclosed a certificate compromise in January 2021.
Permira Acquires Mimecast: Executive Perspectives
In a prepared statement about the deal, Mimecast CEO Peter Bauer said:
“Today is an exciting milestone for Mimecast as we begin a new chapter for our company. Our team has done an outstanding job growing and expanding our relationships with customers and innovating our platform. Permira has a strong track record of collaboratively supporting companies’ growth ambitions and strategic goals, and we look forward to working together to further strengthen the cybersecurity and resilience of organizations around the world. This is a great outcome for our company and our shareholders.”
Added Robert Schechter, independent director of Mimecast and chair of the Special Committee:
“This transaction follows a strategic process overseen and directed by an independent Special Committee of the Board of Directors that included discussion with a number of strategic and financial parties. We are pleased to deliver significant immediate cash value to our shareholders and believe that this transaction is the best path forward for Mimecast and our stakeholders.”
Noted Michail Zekkos and Ryan Lanpher of Permira Partners:
“We have long admired Mimecast, its management team and its talented employees. Email is the leading vector for cyberattacks, and phishing and impersonation attempts are continuously evolving. This means there has never been more urgency or need for organizations to protect their critical data and infrastructure. With an innovative platform, world-class security controls and scalable model, Mimecast is ideally positioned to help companies both large and small protect their employees from malicious activity. We look forward to leveraging our experience scaling global technology businesses as we partner with Peter and team on their next phase of growth.”
Concluded Pierre Pozzo, principal at Permira:
“Mimecast is widely recognized as an established leader and innovator in the email security space with a strong and growing position in the enterprise market. We share the company’s belief in the significant opportunity ahead in cybersecurity across all collaboration channels, especially as more individuals have transitioned to a remote workplace. We look forward to partnering with the Mimecast team to accelerate the product roadmap and expand the go-to-market organization in order to drive further growth."
