(Reuters) – Private equity firm Thoma Bravo said on Monday it would buy cyber-security company Proofpoint Inc. for about $ 10.1 billion, at a time when telecommuting due to the pandemic has driven increased demand for network security.
Interest in cyber security companies has increased as more companies turn to the cloud to run their business and among frequent cyber attacks. Funding in the cybersecurity industry reached a record high of $ 11.4 billion last year, an increase of almost 50% from 2018, according to CB Insights. which indicates a premium of approximately 34% until the last closing of the share. The company's shares increased by 32% in pre-market trading.
The offer values Proofpoint at about $ 1
Thoma Bravo, which is largely software and technology focused, has doubled its investments in the sector. It acquired the provider of online trading services Calypso Technology and the computer solution company Talend in March.
Sunnyvale, California-based Proofpoint also reported first-quarter earnings on Monday, topping Wall Street's earnings per share estimates. The company has suspended its revenue call scheduled for April 29 due to the deal.