Mimecast for Sale?

Email security company Mimecast may be up for sale, according to The Wall Street Journal. Potential bidders could include Proofpoint, which is backed by private equity firm Thoma Bravo, the report suggested, though there’s no guarantee a Mimecast company sale will occur.

Mimecast is scheduled to announce quarterly results on November 2, 2021, according to the company’s investor relations website. In a previous earnings report, Mimecast said revenue was $142.5 million for the quarter ended  June 30, 2021, up 24 percent from the corresponding quarter the previous year. Also, net income was $10.1 million, up from $3.1 million year-over-year.

Mimecast Email Security Business Overview

Mimecast has 1,700 employees and 40,600 customers, according to the email security company’s website. The company’s market capitalization is $4.68 billion, according to SeekingAlpha.

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’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.

Will Thoma Bravo, Proofpoint Acquire Mimecast?

Meanwhile, private equity firm Thoma Bravo remains very active in the cybersecurity market. Key investments have included Barracuda, Imperva, threat intelligence company Intel 471, LogRhythm, Sophos, and machine identity management firm Venafi.

Moreover, Thoma Bravo acquired Mimecast rival Proofpoint for $12.3 billion in April 2021. In terms of revenues, Proofpoint is roughly twice the size of Mimecast.

Will Thoma Bravo acquire Mimecast and tuck the business into Proofpoint? For now, that question is speculation. The private equity firm and email security companies have not commented about The Wall Street Journal report.

And, some ChannelE2E speculation: The leak to The Wall Street Journal could be designed to bring additional bidders to the Mimecast table… …

 

Return Home

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *