April 26, 2024 at 12:06PM
Thoma Bravo completes a $5.3 billion acquisition of UK-based cybersecurity company Darktrace, which saw its share price plummet due to a failed deal and accounting fraud allegations. The private equity firm plans to take Darktrace private, citing its strong financials and innovative cybersecurity AI. The move raises concerns about UK tech investment prospects and touches on the trial of former Autonomy CEO Mike Lynch.
Key takeaways from the meeting notes:
– Private equity investor Thoma Bravo has successfully completed a $5.3 billion acquisition of UK-based cybersecurity company Darktrace after a previous failed attempt in 2022.
– Darktrace’s share price saw significant fluctuations due to the failed deal, allegations of accounting fraud, and subsequent validation by auditing giant EY.
– Thoma Bravo views Darktrace as an attractive investment and values its financial model, resilience, and leadership in cybersecurity AI. The private equity firm aims to support Darktrace’s growth and development.
– Darktrace’s decision to go private was driven by its belief that its value was not being fairly reflected in the public market, and the move has implications for the UK tech investment outlook.
– Analysts noted that Darktrace going private further weakens the UK’s tech investment prospects, with the country lacking comparable alternatives to major tech companies, particularly in the AI sector.
– The meeting also addressed the earlier ties of Darktrace’s founder, Mike Lynch, to the Autonomy-HPE trial, highlighting his financial backing of Darktrace and the potential substantial payout to his family from the takeover.
These takeaways provide a comprehensive summary of the key discussions and developments related to the acquisition of Darktrace by Thoma Bravo and its implications for the company, its stakeholders, and the broader tech investment landscape in the UK.