When U.S. private equity group Thoma Bravo bought cybersecurity specialist SailPoint in April 2022, many investors thought it was a transaction doomed to fail.
But now, it looks like Thoma Bravo will be laughing all the way to the bank.
As the Financial Times reported today, SailPoint’s IPO is poised to deliver a multibillion-dollar windfall to investors. Thoma Bravo stands to make more than $4 billion from the IPO, which raised almost $1.4 billion and valued the Texas-based company at more than $12 billion. Thoma Bravo paid $6.9 billion for SailPoint in April 2022, about 15 times the annual sales for a company that was barely profitable at the time, FT said.
SailPoint’s annualized recurring revenues have roughly doubled to more than $800 million since Thoma Bravo’s buyout, according to regulatory filings cited by FT.
SailPoint reported it sold 60 million shares to investors at $23 a share. At that price, Thoma Bravo’s gains stand to be more than $4 billion.
As always, drop me a line at sharon.florentine@cyberriskalliance.com if you have news to share or want to say hi!
Grab your coffee. Here's what you need to know today.
Today’s Tech, Channel and MSP News
1. Tyler Tech beats Wall Street estimates: Tyler Technologies surpassed Wall Street's fourth-quarter revenue expectations, driven by strong demand for its IT services, Reuters reported. The shift of clients from on-premises data systems to cloud-based solutions and the company's expansion into new markets are key drivers of the IT services firm's revenue growth. Tyler Technologies posted revenue of $541.1 million for the quarter ended December 31, beating analysts' average estimate of $540.5 million, according to data compiled by LSEG data.
2. Lucidity raises $21 million Series A: NoOps startup Lucidity.cloud has raised a $21 million Series A, bringing the firm's total funding to $31 million, according to SiliconANGLE. The Indian startup helps automate multi-cloud storage management and works with major cloud infrastructure services such as Amazon Web Services, Microsoft Azure and Google Cloud. Lucidity can be integrated with any application deployed on those platforms without any code to save time that would otherwise be spent manually adjusting storage.
3. Evo Security launches End User Elevation: Identity and access management (IAM) company Evo Security this week launched End User Elevation (EUE)—a new AI-powered solution that eliminates the risks of persistent admin rights while minimizing IT technician workloads. Evo Security's MSP-focused solution provides granular, streamlined, time-bound admin access for end users without requiring manual technician approvals.
4. Microsoft, Meter team up for AI networking: Microsoft and Meter, Inc. announced this week a multiyear strategic partnership to collaborate on advancing networking that is more efficient, secure, and AI-ready, the companies said. Together, the two companies will work to remove the complexities associated with legacy networking systems, provide more performant networking products, and accelerate network automation, according to the two companies.
5. Thrive's new CFO: MSSP Thrive has named Ben Reich to the role of Chief Financial Officer to further the company’s growth and expansion objectives through organic growth and acquisition, Thrive said in a statement. Most recently, Reich was Chief Financial Officer at Opti9 Tech. Reich's appointment follows the recent appointment of Bill McLaughlin to the role of CEO. Thrive also received a strategic investment from Berkshire Partners and Court Square Capital Partners and the acquisitions of Michigan-based Safety Net and North Carolina-based The Longleaf Network. Congratulations!
