By Sam Boughedda
Thoma Bravo is set to take Ping Identity (NYSE:PING) private for $28.50 per share in an all-cash transaction valuing the company at approximately $2.8 billion, it was announced Wednesday.
The price represents an approximately 63% premium over Ping Identity's closing share price on August 2. The deal is expected to close in the fourth quarter of 2022.
"Ping Identity is better positioned than ever to capitalize on the growing demand from modern enterprises for robust security solutions. We are pleased to partner with Thoma Bravo, which has a strong track record of investing in high-growth cloud software security businesses and supporting companies with initiatives to turbocharge innovation and open new markets," said Andre Durand, Ping Identity's Chief Executive Officer.
The announcement has provided a boost to cybersecurity stocks Wednesday, with CrowdStrike (NASDAQ:CRWD) +3.4%, Zscaler (NASDAQ:ZS) +2.7%, Palo Alto Networks (NASDAQ:PANW) +2.4%, SentinelOne (NYSE:S) +4.9%, and Okta (NASDAQ:OKTA) +6.6% all rising.
Following the announcement, a Cowen analyst said: "This deal, the latest in a series of cybersecurity acquisitions by private equity firms executing cybersecurity consolidation, bodes well for FORG, a leader in the Identity space."
The analyst added that cybersecurity is increasingly "mission critical and Identity solutions are essential components of effective cyber defense infrastructure."
"With a TAM of over $70B, Identity represents the first line of defense for addressing ~500M identity-related breaches annually. This deal, the latest in a series of cybersecurity acquisitions by private equity firms executing consolidation strategies, bodes well for Identity names. In our view, increased acquisition activity is being spurred by depressed valuations in the current uncertain macroeconomy."