Thoma Bravo Acquires UK Cybersecurity Company Darktrace in $5 Billion Deal

Darktrace, a prominent U.K.-based cybersecurity company, is set to go private in a deal that values the company at around $5 billion. The deal, orchestrated by a newly-formed entity called Luke Bidco Ltd, backed by private equity giant Thoma Bravo, includes an all-cash bid of £6.20 ($7.75) per share, representing a 44% premium on its average price for the three-month period ending April 25.

Founded in 2013 in Cambridge, Darktrace is known for its AI-enabled threat detection capabilities, using machine learning to identify abnormal network activity and potential cyber threats. The company boasts high-profile clients such as Allianz, Airbus, and the City of Las Vegas.

After going public on the London Stock Exchange in April 2021 with an opening valuation of $2.4 billion, Darktrace saw its shares reach an all-time high of £9.45 before dropping to a low of £2.29. However, the company’s shares had been steadily rising since the beginning of the year, prompting Thoma Bravo’s interest in taking the company private.

Thoma Bravo sees Darktrace as an attractive opportunity to increase its exposure to the fast-growing cybersecurity market, citing the company’s cutting-edge technology and capabilities in artificial intelligence. Darktrace’s chair, Gordon Hurst, expressed confidence in the proposed acquisition, highlighting the benefits of having a strong financial partner like Thoma Bravo to enhance the company’s position in the cybersecurity industry.

The deal is still subject to shareholder approval, but both companies anticipate completing the transaction by the end of 2024. With the cybersecurity market evolving rapidly in response to complex and sophisticated cyber threats, the partnership between Darktrace and Thoma Bravo is poised to drive innovation and growth in the industry.