Proofpoint [NASDAQ: PFPT] to be Acquired by Thoma Bravo

Proofpoint, Inc. [NASDAQ: PFPT] revealed Monday that it has inked an agreement with Thomo Bravo. After the agreement, Thomo Bravo will acquire PFPT in an all-cash transaction that values Proofpoint at nearly $12.3 billion. Proofpoint has gained recognition after attaining outstanding results for customers all around the globe. Proofpoint has made its reputation as a true powerhouse in the cybersecurity sector.

Shares of Proofpoint skyrocketed 31.10% at $172.77 at the time of writing on Monday. The firm has gained +40.99 on Monday’s session. PFPT has reported a trading volume of 10.39 million as compared to the average volume of 530.14K. In the past 52-weeks of the trading session, the shares of the firm wavered between the 52-week low range of $91.60 and the 52-week high range of $140.91. The firm market cap has reached $7.50 billion at the time of writing.

Acquisition Details

As per the buying agreement, Proofpoint shareholders will obtain $176.00 per share in cash. It signifies a payment of nearly 34 percent over the closing share price of PFPT on April 23, 2021, the last full trading day before the deal announcement. Moreover, it is a premium of nearly 36 percent over Proofpoint’s three-month volume-weighted average closing share price through April 23, 2021. 

Furthermore, after the execution of the agreement, Proofpoint will turn into a private firm with the flexibility and resources to continue offering the most effective cybersecurity and compliance solutions to secure people and enterprises all around the globe. This acquisition is beneficial for PFPT as it has the opportunity to get the advantage of the operating capabilities, capital support, and deep sector know-how of Thoma Bravo.

The board of directors of Proofpoint has agreed to the deal and gave their consent. Additionally, the contract also comprises a 45-day go-shop duration ending on June 9, 2021, which enables the Board and its advisors to actively commence, request, and analyze alternative purchase offers from third parties. The Board will have the right to cancel the merger deal to enter into a superior proposal obedient to the terms and conditions of the merger deal.